Futures climb on hopes for Greek debt deal

[February 03, 2015]  By Chuck Mikolajczak

NEW YORK (Reuters) - U.S. stock index futures climbed on Tuesday, with the benchmark S&P 500 index set to continue a rally fueled by hopes of a deal on Greek debt.

Stocks rallied late in the prior session on signs Greece was softening its approach to debt negotiations. A source told Reuters that Greek Finance Minister Yanis Varoufakis, in London to reassure private investors he was not seeking a showdown with Brussels over a new debt agreement, said the new left-wing government would spare privately held bonds from losses.

The S&P 500 is still down more than 3 percent from its Dec. 29 record high amid lackluster corporate earnings and data showing the U.S. economy growing at a slower pace than investors anticipated. January's 3.1 percent decline was the worst monthly performance for the index in a year.

According to Thomson Reuters data through Monday morning, of 226 companies in the S&P 500 that have posted earnings, 73 percent have topped expectations. The expected growth rate for the quarter sits at 5.4 percent, down from 11.2 percent expected on Oct. 1.

Aetna, the third-largest U.S. health insurer, reported fourth-quarter earnings that matched Wall Street expectations and raised its 2015 forecast for operating earnings.

Office Depot <ODP.O> shares surged 17.8 percent to $8.99 before the opening bell after the Wall Street Journal reported the company is in advanced talks to merge with Staples Inc. Staples shares jumped 10.8 percent to $18.99.

Economic data expected Tuesday includes December factory orders at 10:00 a.m. (1500 GMT) and U.S. vehicle sales throughout the day.

European stocks rose, with the pan-European FTSEurofirst 300 index just below a seven-year high on hopes for an agreement on the Greek debt standoff. Athens' benchmark index ATG  climbed more than 9 percent. [.EU]

Futures snapshot at 7:32 a.m. ET (1232 GMT):

S&P 500 e-minis were up 6.25 points, or 0.31 percent, with 143,949 contracts changing hands.

Nasdaq 100 e-minis were up 9.5 points, or 0.23 percent, in volume of 25,460 contracts.

Dow e-minis were up 46 points, or 0.27 percent, with 23,031 contracts changing hands.

(Editing by Bernadette Baum)

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