* JPMorgan edges up after earnings; Wells Fargo due
* Retail sales data on tap
* Google up in light premarket trade after Nest buy
* Futures up: Dow 16 pts, S&P 2.5 pts, Nasdaq 3.25 pts
By Chuck Mikolajczak
NEW YORK, Jan 14 (Reuters) - U.S. stock index futures
advanced on Tuesday, a day after the S&P 500 suffered its
biggest drop in two months, as investors prepared for retail
sales data and the first round of earnings from major banks.
* The benchmark S&P index fell 1.3 percent on Monday,
its worst decline Nov. 7, as investors exercised caution amid
mounting negative corporate outlooks. Almost 10 out of every 11
earnings pre-announcements for the current earnings season from
S&P 500 companies have lowered estimates, according to Thomson
Reuters data, which would be the lowest on record if it
* JPMorgan Chase & Co was little changed in choppy
premarket trading after posting quarterly earnings. Wells Fargo
& Co results are due later on Tuesday and will also be
monitored closely by investors.
* Later in the week, Bank of America Corp, Citigroup
Inc, Goldman Sachs and Morgan Stanley are
among the financial companies scheduled to post results.
* S&P 500 futures rose 2.5 points and 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 16
points and Nasdaq 100 futures added 3.25 points.
* After the closing bell on Monday, Yum Brands Inc
said December sales at established restaurants in China, its top
market, rose a smaller-than-expected 2 percent after weakness at
its Pizza Hut Casual Dining chain weighed on a recovery at KFC.
* Merger activity continues to be lively. Google Inc
gained 1 percent in light premarket trade after the
world's largest online search engine announced late Monday a
$3.2 billion deal to buy smart thermostat and smoke alarm maker
Nest Labs Inc.
* Charter Communications Inc on Monday formally
offered to acquire larger rival Time Warner Cable for
$37.3 billion, sparking what is likely to be a contentious
battle to control the No. 2 U.S. cable operator.
* Microsoft Corp shares fell 0.8 percent to $34.69
in premarket trade after Citigroup cut the stock to "neutral"
from a "buy" rating.
* Thompson Creek Metals Company Inc jumped 23.3
percent to $2.70 before the opening bell after Bank of America
Merrill Lynch boosted its rating on the stock to "buy."
* European shares fell, taking their cue from Wall Street's
* Asian shares came under pressure, with Japanese stocks
tumbling more than 3 percent as the yen hit a four-week high
against the dollar after last week's surprisingly weak jobs
report raised concerns about U.S. growth.