* Coach advances dividend payable date to Dec. 27
* Cerberus may join Virtu bid for Knight Capital -WSJ
* Futures up: Dow 10 pts, S&P 1.2 pts, Nasdaq 4.5 pts
NEW YORK, Dec 4 (Reuters) - U.S. stock index futures edged
up in low volume on Tuesday as the market continues to be
hostage to negotiations in Washington on how to avert a "fiscal
cliff" that could push the U.S. economy into recession.
* Congress Republicans proposed steep spending cuts on
Monday but gave no ground on President Barack Obama's call to
raise taxes, and the proposal was dismissed by the White House.
* Headlines about the negotiations have dominated market
action of late, with many expecting Congress to come up with a
deal that could trigger a rally in equities.
* Coach became the latest company to advance the
date of its next dividend payment. Expectations of higher taxes
on dividends kicking in next year have pushed many companies to
pay special dividends this year or advance their next pay back
* S&P 500 futures rose 1.2 points and were slightly
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 rose
10 points, and Nasdaq 100 futures added 4.5 points.
* A light data calendar for Tuesday includes the Institute
for Supply Management-New York release of its November index of
regional business activity at 9:45 a.m. (1445 GMT).
* Cerberus Capital Management is in talks to join Virtu
Financial's bid for U.S. brokerage Knight Capital Group,
the Wall Street Journal reported, citing people familiar with
the discussions. Knight became a takeover target after a trading
glitch left it nearly bankrupt earlier his year.
* Shares of Pep Boys-Manny Moe and Jack were down
7.4 percent in light premarket trading a day after the release
of the auto parts retailer's results.
* U.S. stocks struggled on Monday to extend the previous
week's gains, dropping as disappointing numbers on U.S. factory
activity dampened optimism about China's economic growth. The
Dow Jones industrial average fell 0.46 percent to
12,965.60 at the close. The S&P 500 declined 0.47 percent
to 1,409.46 and the Nasdaq Composite dropped 0.27
percent, to 3,002.20.