* Texas instruments warns on Q3
* Moody's cuts Germany's ratings outlook
* Germany's private sector shrinks
* Futures down: Dow 28 pts, S&P 3.2 pts, Nasdaq 11
By Edward Krudy
NEW YORK, July 24 (Reuters) - U.S. stock index futures fell
on Tuesday as traders remained focused on high bond yields in
Spain and as a cautious outlook from tech bellwether Texas
Instruments weighed on sentiment.
* Texas Instruments Inc second-quarter profit beat
Wall Street expectations but the company warned that its
third-quarter revenue would be weaker than usual for this time
of year as customers are cautious due to global economic
* Concerns about the euro zone focused on Spain's high
borrowing costs due to fears the country may seek a bailout, a
survey showing Germany's private sector shrank for a third
straight month, and Moody's move to cut Germany's rating outlook
* "The market is experiencing a renewed set of fears with
concerns over a global economic slowdown and continued worries
stemming from the euro zone," said Andre Bakhos, director of
market analytics at Lek Securities in New York. "Investors are
stepping back and taking a risk-off stance for the moment."
"Throw in earnings season as another variable and we are
back to an erratic environment," he said.
* S&P 500 futures fell 3.2 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 28
points and Nasdaq 100 futures sank 11 points.
* Spanish five-year government bond yields rose above
10-year yields for the first time since June 2001 on Tuesday, as
investors fretted about the possibility that Madrid may need a
full-blown sovereign bailout. The 10-year last traded at around
* European stocks were slightly down in morning trade,
adding to the market's two-session slide, as a
weaker-than-expected German purchasing managers' survey showed
private sector activity in Europe's largest country contracting
for a third straight month.
* An even gloomier picture for the overall euro zone's
private sector, which shrank for a sixth month in July as
manufacturing output nosedived, added to the likelihood that the
bloc will slump back into recession.
* Investors expected a flurry of earnings on Tuesday, from
companies such as Apple, Broadcom, DuPont
, Lockheed Martin, AT&T, and UPS.
* On the macro front, investors awaited U.S. flash Markit
Manufacturing PMI data for July. Economists in a Reuters survey
expect a reading of 52.0 in the main index versus 52.5 in the
final June report.
* Software maker VMware Inc said it will acquire
privately held Nicira Inc for $1.05 billion in cash to expand
its portfolio and establish a leading position in virtualized
* Pfizer Inc said on Monday that its experimental
Alzheimer's disease treatment failed to prove effective in one
of four high-stakes late-stage trials in patients with mild to
moderate forms of the memory-robbing disease.
* U.S. chipmaker Volterra Semiconductor Corp posted
lower-than-expected quarterly results as research and
development costs rose, sending its shares down 6 percent in
trading after the bell.