US STOCKS-Futures ease with GDP on tap, Microsoft gains

                                
  
                                
 * First reading of GDP on tap at 8:30 a.m. EDT
                                
 * Microsoft rises after profit tops view
                                
 * Futures off: S&P 4.7 pts, Dow 30 pts, Nasdaq 6.75 pts
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Writes through, adds details, quote, byline)
                                
 By Leah Schnurr
                                
 NEW YORK, Oct 29 (Reuters) - U.S. stock index futures eased
on Friday, with a key reading due on economic growth and
caution prompting profit-taking after a strong month.
                                
 Stocks have traded sideways this week with investors wary
of taking significant bets ahead of next week's elections and a
likely announcement of more stimulus from the U.S. Federal
Reserve.
                                
 The gross domestic product report, due at 8:30 a.m. EDT
(1230 GMT), will add to the debate over the size and timing of
expected further quantitative easing from the Fed.
                                
 The GDP is forecast to expand at a 2 percent annual rate,
compared with 1.7 percent in the second quarter, according to a
Reuters survey of economists. For details, see [ID:nN28207235]
                                
 Among the latest corporate earnings, Merck & Co Inc <MRK.N>
reported quarterly sales that missed estimates and took an
almost $1 billion charge related to a government probe.
[ID:nN29211606]
                                
 Microsoft Corp <MSFT.O> gained 3.1 percent to $27.10 in
premarket trade after its profit beat expectations on higher
sales of its flagship software. [ID:nN28291120]
                                
 Kim Caughey Forrest, senior equity research analyst at Fort
Pitt Capital Group in Pittsburgh, noted that earnings season
has gotten a little less attention than usual as investors were
uncertain how a second round of Fed stimulus could affect the
companies they hold.
                                
 "I strongly believe the market does set prices with respect
to what six months from now is going to hold. With (more)
quantitative easing and the amount and timing still undecided,
it gives us some pause," said Caughey Forrest.
                                
 S&P 500 futures <SPc1> slipped 4.7 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 30
points, and Nasdaq 100 futures <NDc1> gave up 6.75 points.
                                
 Stocks ended little changed on Thursday as investors took a
cautious track. The S&P 500 is up 0.1 percent for the week so
far. Since the beginning of October, the S&P 500 is up almost 4
percent.
                                
 The greenback steadied heading into the data, which is due
at 8:30 a.m. EDT (1230 GMT). The dollar index <.DXY> added 0.3
percent. The dollar and stocks have developed an inverse
relationship of late, though that has weakened somewhat this
week.
                                
 Also on the data front, the final reading of the October
consumer sentiment index is due at 9:55 a.m. EDT (1355 GMT).
Economists expect a reading of 68.0, compared with 67.9 in the
preliminary October report. [ECI/US]
  (Editing by Jeffrey Benkoe)