* Texas Instruments warning sparks slowdown worries
* Interbank borrowing rates ease again
* Dow futures off 1 pct, S&P futures off 1.4 pct, Nasdaq
futures off 2.1 pct
(Updates with details, updates prices)
By Leah Schnurr
NEW YORK, Oct 21 (Reuters) - U.S. stock future indexes fell
on Tuesday as quarterly earnings and outlooks raised concerns
about flat to weaker profit growth ahead.
Tech bellwether Texas Instruments Inc <TXN.N> warned of
slowing sales for its widely used analog chips and
heavy-equipment maker Caterpillar <CAT.N> said it sees no
improvement in sales and revenues for next year, but it
reaffirmed this year's forecast.
Stocks in Europe were little changed after the U.S.
earnings reports. Earlier European and Asian markets climbed on
confidence that recent moves were beginning to thaw seized up
money markets, the key concern stemming from the credit crunch.
In the latest in a spate of maneuvers to shore up financial
markets, Japan and France both offered help to their banks. For
details, see [].
But among earnings reports, Texas Instruments said that its
fourth-quarter would miss expectations, citing a slowdown in
orders for its chips used in everything from consumer
electronics to industrial equipment. [].
Shares of Texas Instruments slid 7.7 percent to $16.60
before the opening bell.
"The biggest fear in the market now is actually a deeper
recession, and that, coupled with an uncertainty as to how weak
corporate earnings are, is right now the market's biggest
focus," said Andre Bakhos, president of Princeton Financial
Group in Princeton, New Jersey.
"As companies report and as companies tell us what they're
seeing from a business standpoint, that will lend direction."
S&P 500 futures <SPc1> fell 12.40 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 <DJc1> were down
127 points, and Nasdaq 100 <NDc1> futures slipped 26 points.
Dow component DuPont Co <DD.N> cut its full-year forecast
and reported lower quarterly results as it was hurt by
hurricane-related charges and lower volume shipments.
[]. Shares were down 1.9 percent at $35.50 before
the bell.
But drug maker Pfizer Inc <PFE.N> beat Wall Street's
expectations, sending its shares up 2.7 percent at $17.80.
A fall in bank-to-bank borrowing costs suggested some
confidence was returning on hopes that moves by central banks
to ease the credit crunch were paying dividends.
On the acquisition front, Swiss drug maker Roche Holding AG
confirmed its commitment to a $43.7 billion for the rest of
Genentech Inc <DNA.N>. <ID:nLH581981>.
U.S. stocks rose on thin volume on Monday after Federal
Reserve Chairman Ben Bernanke backed more government spending
to help the economy and credit market conditions showed further
signs of improvement.
(Editing by Kenneth Barry)
