* Investors wary before talks to resolve fiscal cliff
* S&P on track for second straight week of steep losses
* Dell shares fall in premarket as profit slides 47 pct
* Futures down: Dow 46 pts, S&P 3.6 pts, Nasdaq 6 pts
By Ryan Vlastelica
NEW YORK, Nov 16 (Reuters) - U.S. stock index futures fell
on Friday as investors continued to worry about the looming
"fiscal cliff" debate, with Democrats and Republicans appearing
to dig into their opposing positions.
* Concerns over the cliff -- large, automatic budget cuts
and tax hikes that begin to take effect in the new year -- have
pressured stocks ever since the Nov. 6 presidential election.
The S&P is on track to notch a second straight week of losses of
more than 1 percent.
* President Barack Obama and congressional leaders are
meeting for budget and tax talks Friday afternoon, and Senate
Republican leader Mitch McConnell recently said his party
wouldn't raise tax rates, recalling last year's political
impasse over raising the debt ceiling.
* Investors worry that if no deal is reached on the cliff,
the economy could slide into recession. These concerns have
overshadowed other issues in the economy, resulting in a market
where gains have been difficult to sustain. The S&P is down 4.3
percent over the past two weeks.
* Dell Inc will be in focus a day after reporting a
steep drop in its quarterly profit. Shares fell 2.5 percent to
$9.32 in premarket trading.
* S&P 500 futures fell 3.6 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 46
points and Nasdaq 100 futures slid 6 points.
* The S&P is currently down 1.9 percent for the week, while
the Dow is off 2.1 percent and the Nasdaq is down 2.3 percent.
The S&P 500 sunk to a 3 1/2-month closing low on Thursday and
remained well below its 200-day moving average, which it
pierced last week.
* While the S&P remains up 7.6 percent for the year, what
had looked like a stellar 2012 for stocks has turned into merely
an average year, and as 2012 draws to a close, investors are
becoming more inclined to protect the gains they have.
* Sears Holdings Corp reported a quarterly loss
that was narrower than expected, but same-store sales that fell
on weak demand for electronics. Gap Inc raised its
full-year profit view, quelling concerns of a slowdown going
into the holiday season.
* The European debt crisis also remains in focus as the euro
zone relapsed into its second recession since 2009 in the third
quarter. European shares fell 0.4 percent, pressured by weakness
* A flare-up in violence in the Middle East added to market
unease as Israeli warplanes bombed targets in and around Gaza
city for a second day, while two rockets fired from the Gaza
Strip targeted Tel Aviv.
* U.S. stocks ended flat on Thursday with investors wary of
making bets in the face of a drawn-out battle over impending tax
and spending changes, while retailer Wal-Mart tumbled after