* HP climbs after earnings, outlook
* German business morale jumps, fastest pace in over 2 years
* S&P up on pace for first weekly loss of year
* Futures up: Dow 28 pts, S&P 6.4 pts, Nasdaq 10.5 pts
By Chuck Mikolajczak
NEW YORK, Feb 22 U.S. stock index futures rose
on Friday, indicating the S&P 500 may halt a two-day losing
skid, boosted by positive economic data from Europe and
better-than-expected earnings from Hewlett-Packard.
* The S&P 500 has dropped 1.9 percent over the past
two sessions, its worst two-day drop since early November,
putting the index on pace for its first weekly decline of the
year. The retreat was triggered by minutes from the Federal
Reserve's January meeting released earlier in the week which
suggested stimulus measures may end earlier than thought.
* Still, the index is up more than 5 percent for the year
and has held the 1,500 support level.
* Hewlett-Packard Co climbed 4.7 percent to $17.90
in premarket trading after the No. 1 personal computer maker's
quarterly revenue and forecasts beat Wall Street expectations as
it continued to cut costs under CEO Meg Whitman's turnaround
* The German Ifo business climate indicator for February
rose to 107.4, its best one-month rise in more than two years,
boosting optimism after Thursday's disappointing PMI data stoked
concerns over the euro zone economy.
* S&P 500 futures rose 6.4 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures gained 28
points, and Nasdaq 100 futures added 10.5 points.
* Insurer American International Group Inc reported
fourth-quarter results that beat analysts' expectations,
although Chief Executive Robert Benmosche said some employee
bonuses will be smaller this year because the company did not
meet all of its performance targets. Shares advanced 3.8 percent
to $38.68 in premarket trading.
* Marvell Technology Group Ltd rose 4.5 percent to
$9.90 in premarket trade after the chipmaker forecast results
this quarter that were largely above analysts' expectations as
it gained market share in the hard-disk drive and flash-storage
* Fellow chipmaker Texas Instruments Inc raised its
quarterly dividend by a third and said it would buy back an
additional $5 billion in stock.
* According to Thomson Reuters data through Thursday
morning, of 427 companies in the S&P 500 that have reported
results, 69.3 percent have exceeded analysts' expectations,
compared with a 62 percent average since 1994 and 65 percent
over the past four quarters.
* Fourth-quarter earnings for S&P 500 companies are
estimated to have risen 5.9 percent, according to the data,
above a 1.9 percent forecast at the start of the earnings
* European shares advanced after the better-than-expected
German survey, with the pan-European FTSEurofirst 300 index
up 1.1 percent.
* Asian shares recouped some of the previous session's steep
falls as investors reassessed concerns that the Federal Reserve
may end its ultra-soft monetary policy earlier than expected,
but weak U.S. and European data capped Friday's recovery.