* Kraft seals $19.6 billion deal to buy Cadbury
* Citigroup earnings awaited
* Futures dip: Dow 17 pts, S&P500 2.5 pts, Nasdaq 0.75 pts
By Chuck Mikolajczak
NEW YORK, Jan 19 (Reuters) - U.S. stock index futures
slipped on Tuesday as Kraft Foods Inc <KFT.N> reached a deal to
acquire Cadbury <CBRY.L> and earnings season picked up steam.
Kraft Foods lost 2.3 percent to $28.90 in premarket trade
after the company agreed to a revised cash-and-stock deal to
buy Cadbury for about $19.6 billion, creating the world's top
confectioner. For details, see []
The pace of corporate earnings builds this week, with
Citigroup Inc <C.N> and IBM Corp <IBM.N> scheduled to report on
Tuesday while Google Inc <GOOG.O>, Goldman Sachs Group Inc
<GS.N> and American Express Co <AXP.N> are due to post results
later in the week.
"The primary concern going into the day is Citigroup and
the IBM earnings," said Andre Bakhos, president of Princeton
Financial Group in North Brunswick, New Jersey.
"That will give us a window into the heartbeat of the
market."
Citigroup shares shed 0.6 percent to $3.40 ahead of its
quarterly results.
S&P 500 futures <SPc1> fell 2.5 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> fell 17
points, and Nasdaq 100 futures <NDc1> lost 0.75 point.
U.S. markets were closed on Monday for the Martin Luther
King Jr Day holiday.
Industrial conglomerate Tyco International <TYC.N> will
acquire Broadview Security, which operates for Brink's Home
Security Holdings Inc <CFL.N>, for $1.9 billion in a deal that
brings together two large providers of residential and
commercial security in North America, the two companies said on
Monday. []
Brink's shares surged 33.7 percent to $42.00 in premarket.
Swiss Re <RUKN.VX> agreed to transfer a U.S. life
reinsurance contract to Warren Buffett's Berkshire Hathaway
<BRKa.N> for $1.27 billion, enabling Berkshire to pocket
premiums payable under the contract while taking responsibility
for up to $1.5 billion in potential claims. []
Apple Inc <AAPL.O> will host a special event on Jan. 27
where it is widely expected to unveil its tablet computer, as
the company looks to extend its hot hand into a brand new
product category. []
Goodyear Tire & Rubber Co <GT.N> shares fell 1.5 percent to
$14.79 in light trade after the company said on Monday it
expects to record a charge of about $150 million in the first
quarter because of Venezuela's devaluation of its currency
earlier this month. []
On Friday, U.S. stocks slid after JPMorgan Chase & Co
<JPM.N> reported deep fourth-quarter loan losses and raised
concerns about bank profits, while a weaker-than-expected
Reuters/University of Michigan Surveys of Consumers for early
January also hurt shares, as consumer worries about incomes and
unemployment rose.
(Editing by Padraic Cassidy)
