* Monday's decline was S&P 500's biggest since November
* ISM's gauge of U.S. service industries on tap, seen
* ADM, Estee Lauder shares up in premarket trade after
* Futures up: Dow 48 pts, S&P 5.3 pts, Nasdaq 10.25 pts
By Ryan Vlastelica
NEW YORK, Feb 5 (Reuters) - U.S. stock index futures pointed
to a modestly higher open on Tuesday, retracing lost ground on
Monday in the market's worst daily session since November.
Investors will be looking to the Institute for Supply
Management's January non-manufacturing index, due at 10 a.m.
(1500 GMT). Economists forecast a reading of 55.2 versus 55.7 in
Last week, ISM manufacturing index for January showed the
pace of growth in manufacturing picked up to its highest level
in nine months.
On Monday major stock indexes dropped about 1 percent,
pressured by renewed worries over the euro zone's sovereign debt
crisis. While the day's decline pushed the S&P 500 into negative
territory for February, equities have been strong performers,
with the benchmark S&P 500 index up 4.9 percent for 2013.
Wall Street has advanced on strong fourth-quarter earnings
and signs of improved economic growth, suggesting the market's
longer-term trend remains higher.
"Markets may have been slightly ahead of themselves, but
investors recognize that earnings and data are both more
positive than we previously thought, so no one should worry that
yesterday was the start of anything bigger," said Oliver
Pursche, president of Gary Goldberg Financial Services in
Suffern, New York.
Archer Daniels Midland reported revenue and adjusted
fourth-quarter earnings that beat expectations, boosted by
strong global demand for oilseeds. Shares rose 2 percent to $29
in premarket trading.
Estee Lauder Cos Inc gained 3.2 percent to $63 before
the bell after reporting results.
According to Thomson Reuters data, of the 256 S&P 500
companies that have reported earnings thus far, 68.4 percent
have beaten profit expectations, compared with the 62 percent
average since 1994 and the 65 percent average over the past four
Fourth-quarter earnings for S&P 500 companies are expected
to rise 4.4 percent, according to the data. That estimate is
above the 1.9 percent forecast at the start of earnings season,
but well below the 9.9 percent forecast on Oct. 1.
S&P 500 futures rose 5.3 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 added 48
points and Nasdaq 100 futures rose 10.25 points.
At current levels, the S&P is about 5.4 percent away from
its all-time intraday high of 1,576.09, reached in October 2011.
McGraw-Hill will be in focus a day after news the
U.S. Justice Department plans to sue the company's Standard &
Poor's unit over its mortgage bond ratings. The action would
mark the first such federal action against a credit rating
agency related to the recent financial crisis.
The stock plummeted almost 14 percent in Monday's session,
its worst daily losses since the October 1987 market crash,
though it rose 0.7 percent to $50.64 in Tuesday premarket
U.S. shares of BP Plc rose 1.3 percent to $44.18
before the bell after the company reported earnings that beat
expectations and said underlying financial momentum would be
"strongly evident" by 2014.
Dell Inc may also be volatile as the company moved
closer to a nearly $24 billion buyout deal to take the company
private. The stock rose 1 percent to $13.40 in premarket
U.S. stocks slid on Monday as worries about Europe caused
the market to pull back from recent gains.