US STOCKS-Futures down as oil prices rally on Libyan turmoil

* Oil prices top $100 a barrel on Libyan unrest

* GM reports first full-year profit since '04

* Futures off: S&P 8 pts, Dow 46 pts, Nasdaq 14.5 pts

* For up-to-the-minute market news see [STXNEWS/US] (Updates with GM results; Adds byline, quote)

By Angela Moon

NEW YORK, Feb 24 (Reuters) - U.S. stock index futures fell on Thursday, signaling another down day on Wall Street, as oil continued to rally on turmoil in Libya, denting investor sentiment.

U.S. crude oil futures soared 3.6 percent a barrel to above $101 on mounting fears the unrest in Libya that has cut more than one-quarter of the OPEC-member's crude output could spread to other major producers in the region, including top exporter Saudi Arabia. For details, see [ID:nLDE71N009] and [O/R]

Shares of General Motors Co bounced between small gains and losses in premarket trade after the U.S. automaker's fourth-quarter earnings came in slightly above expectations and it posted its first full-year profit since 2004. [ID:nN24231822]

S&P 500 futures fell 8 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 lost 46 points, and Nasdaq 100 futures dropped 14.5 points.

Adding to this week's global sell-off triggered by the turmoil in Libya, European stocks fell around 0.7 percent and Tokyo's Nikkei average closed down 1.2 percent.

"It's all about the fear factor. Oil prices are continuing to move higher and that is deepening the fear. We will have to closely watch the VIX today," said Peter Cardillo, chief market economist at Avalon Partners in New York.

The CBOE Volatility Index VIX <.VIX>, Wall Street's so-called fear gauge, hit its highest level since Nov. 30 on Wednesday. The index closed at 22.13.

In the latest economic data, durable goods orders and weekly jobless claims will be released at 8:30 a.m. EST (1330 GMT) and new home sales data comes at 10 a.m. EST (1500 GMT).

Economists in a Reuters survey expected a reading of 400,000 for initial claims for unemployment benefit, versus 410,000 in the previous week.

Orders for long-lasting goods are expected to have risen 2.7 percent in January from a decline of 2.3 percent previously.

New home sales are forecast falling to 310,00 in January from 330,000 in the previous month.

"Even if they (economic news) are good, investors will be in a defensive mood as the correction stage has already begun and the pressure to sell stocks has increased," said Cardillo.

Limited Brands Inc said Wednesday that fourth-quarter net income rose 27 percent as fewer markdowns and more full-priced sales boosted results. [ID:nN23187705]

U.S. stocks dropped for a second straight session on Wednesday as Libya's violence sent oil prices up and as technology shares sank. (Reporting by Angela Moon; editing by Jeffrey Benkoe)