* McDonald's says full-year results to be 'challenged' by
* UBS profit tops forecast despite charge to settle suit
* One-third of S&P 500 companies due to report this week
* Futures: S&P off 0.2 pt; Dow off 16 pts; Nasdaq up 2.75
By Angela Moon
NEW YORK, July 22 (Reuters) - Wall Street was set for a flat
open on Monday following a gloomy earnings outlook frrom
McDonald's and as investors booked profits after the S&P 500
index hit a closing high on Friday.
McDonald's Corp, the world's largest restaurant
chain, reported weaker-than-expected net income and warned that
full-year results would be "challenged" in the face of falling
sales in Europe, its biggest market. Shares fell 2.9 percent to
$97.42 in premarket trade.
McDonald's earnings came in a busy week of reports, with
about one-third of S&P 500 companies due to report, including
Apple and entertainment provider Netflix Inc.
The S&P 500 index on Friday edged up to end at a
second straight record high, while the Dow and Nasdaq stock
gauges fell as disappointing earnings results from Microsoft and
Google dragged on the market.
U.S.-listed shares of UBS rose 3.3 percent
to $19.25 in premarket trade after the Swiss bank said its
second-quarter profit beat forecasts despite a $920 million
charge to settle a U.S. lawsuit and other matters.
"Considering the rally we've had recently, we are probably
likely to move sideways or consolidate gains for a day or two,
before moving up higher as earnings season intensifies.
Nevertheless, the summer rally continues," said Peter Cardillo,
chief market economist at Rockwell Global Capital in New York.
In economic news, June existing-home sales data is due at 10
a.m. (1400 GMT). For home sales, a Reuters survey of economists
expect a reading of 5.25 million units at an annual rate,
compared with a prior reading of 5.18 million.
Kimberly-Clark Corp, best known for its Kleenex
tissues, posted a higher-than-expected quarterly profit on
Monday, as cost savings helped offset the negative impact of
foreign exchange rates.
Halliburton Co, the world's second-largest oilfield
services company, posted higher-than-expected quarterly profit
as it made more headway outside its home U.S. market. The stock
was up 0.4 percent in premarket trade.
Analysts' estimates for corporate earnings have been reduced
so much that investors believe the targets for the most part
should be easily beaten.
Through Friday, of the 104 companies in the S&P 500 that
have reported earnings for the quarter, 65.4 percent have
reported earnings above analyst expectations, while 51 percent
have topped revenue estimates, according to Thomson Reuters
S&P 500 futures were flat, and in line with 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 fell 16
points, while Nasdaq 100 futures added 2.75 points.
In Europe, shares were broadly unchanged by midday trade as
mixed company earnings halted the index's march back towards