US STOCKS-Futures edge higher ahead of Microsft, data

                                
   * Honeywell results top estimates
                                
 * British economy contracts unexpectedly
                                
 * Microsoft results, existing home sales on tap
                                
 * Futures up: Dow 8 pts, S&P 500 1.4 pts, Nasdaq 3.75 pts
                                
 * For up-to-the-minute market news, click [STXNEWS/US]
                                
 By Chuck Mikolajczak
                                
 NEW YORK, Oct 23 (Reuters) - U.S. stock index futures rose
slightly on Friday ahead of earnings from software giant
Microsoft Corp <MSFT.O> and existing home sales data.
                                
 Microsoft's rose 1.4 percent to $26.97 in premarket trading
ahead of its fiscal first-quarter results, which are due before
the opening  bell and one day after the closely watched launch
of its Windows 7 operating software. Wall Street expects total
revenue to fall to $12.4 billion from $15 billion a year
earlier, according to a Thomson Reuters I/B/E/S poll.
                                
 Honeywell International Inc <HON.N> advanced 1.3 percent to
$39.50 in premarket trade after the diversified manufacturer
posted a 15 percent decline in profit but topped expectations.
For details, see [ID:nN23443925]
                                
 After the closing bell Thursday, online retailer Amazon.com
Inc <AMZN.O> posted earnings above expectations and its shares
shot up almost 16 percent to $108.26 premarket. [ID:nN2238215]
                                
 "The futures have been vacillating back and forth. You had
some nice earnings news from a handful of people," said Barry
Ritholtz, director of equity research at Fusion IQ in New
York.
                                
 "We see surprises every quarter because companies have
gotten very astute at reducing expectations and then beating
them."
                                
 S&P 500 futures <SPc1> rose 1.4 points and were 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 <DJc1> added 8
points, and Nasdaq futures <NDc1> gained 3.75 points.
                                
 Sales of previously owned homes likely rebounded in
September after a surprise fall in August, boosted by a
government incentive for first-time buyers, low prices and
attractive mortgage rates.
                                
 A Reuters survey of 65 economists indicated existing home
sales at 5.35 million units in September at a seasonally
adjusted annual rate. That would be up from 5.10 million in
August. The data is due at 10 a.m. EDT [1400 GMT].
                                
 Schlumberger Ltd <SLB.N> added 0.4 percent to $68.89 in
light trading Friday after the oilfield services leader
reported third-quarter earnings that beat estimates by 2 cents.
[ID:nN2248654]
                                
 Britain's economy contracted unexpectedly in the third
quarter of this year, the government said Friday, quashing
hopes the downturn was ending, and marked the longest recession
on record. [ID:nLN250789]
                                
 European stocks rose broadly early Friday, as buoyant
banking and mining shares helped reverse a drop in the previous
session. [ID:nLN204560]
                                
 U.S. stocks rose Thursday, with the Dow industrials closing
back above 10,000 after quarterly results from insurer
Travelers Cos Inc <TRV.N> and regional bank PNC Financial
Services Group Inc <PNC.N> boosted financial stocks.
                                
 (Reporting by Chuck Mikolajczak; editing by Jeffrey
Benkoe)