* Stage set for Hollande-Merkel showdown at EU summit
* Papademos clarifies euro remarks but concerns remain
* Dell revenue outlook weighs on sentiment
* Futures down: S&P 7.8 pts, Dow 88 pts, Nasdaq 15 pts
By Angela Moon
NEW YORK, May 22 (Reuters) - U.S. stock index futures fell
on Wednesday as caution prevailed ahead of a meeting of European
leaders and on mounting concerns over Greece's future in the
A weaker-than-expected revenue forecast from computer maker
Dell also weighed on investor sentiment.
Leaders of the 27 EU countries are to meet in Brussels later
in the day for a summit expected to deal with Europe's economic
woes but also ways to prevent debt-mired Greece from skidding
into a chaotic bankruptcy. The leaders are to consider ways to
generate growth and discuss the idea of regional bonds to be
jointly underwritten by all euro zone member states. However,
Germany has already reiterated its opposition to such a move.
Dell Inc shares fell 13 percent to $13.10 in
premarket trade, a day after the company forecast disappointing
second-quarter revenue as U.S. and European corporate tech
spending weakens and consumer personal computer sales continue
Fears that Greece may have to leave the euro grew after Dow
Jones earlier quoted former prime minister Lucas Papademos as
saying Greece had no choice but to stick with a painful
austerity program or face a damaging exit from the euro zone.
His clarification in a television interview later offered little
The "ex-Greek PM was just stating the obvious to anyone
paying attention over the past month since the election. He
doesn't want Greece leave but it could happen and it would be
ugly if it did," said Peter Boockvar, equity strategist at
Miller Tabak + Co in New York.
"This said, the markets are on edge and sensitive to every
possible out of control scenario coming out of Europe."
Facebook Inc will also be eyed, after sources said
that while company officials traveled the country to talk up the
company's $16 billion initial public offering, the social
networking giant advised analysts for underwriters to reduce
revenue and earnings forecasts. The stock was up 0.8 percent to
$31.20 in premarket trade.
S&P 500 futures lost 7.8 points and were below 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 lost 88
points, and Nasdaq 100 futures fell 15 points.
Ariba Inc will also be in the spotlight after top
European software company SAP AG said it plans to buy
Ariba in a deal valuing the business and commerce network
company at $4.3 billion, its latest maneuver against Oracle
in the fast-growing Internet-based computing market.
Wells Fargo & Co does not employ the same kind of
hedging strategy that has triggered a trading loss of at least
$2 billion at rival JPMorgan Chase & Co, the bank's
chief risk officer said on Tuesday.
PetSmart Inc posted a better-than-expected
quarterly profit and raised its full-year outlook on strong
sales across all its product categories, sending its shares up 8
percent in after-market trade.
On the macro front, investors awaited home price index for
March, due at 10:00 a.m ET (1400 GMT), as well as new home sales
for April, also due at 10:00 a.m. ET.
U.S. stocks closed mostly flat on Tuesday after volatility
late in the session, with weakness in materials and energy
shares offsetting strength in financials.