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US STOCKS-Futures suggest flat open after multi-week rally

Published 01/24/2011, 09:11 AM

* McDonald's lower after results, Halliburton flat

* Sara Lee to weigh offer from PE firms: source

* Smurfit-Stone Container surges on buyout offer

* Dow up 12 pts, S&P up 1.8 pt, Nasdaq up 1 pt (Adds McDonald's results, updates prices)

NEW YORK, Jan 24 (Reuters) - U.S. stock index futures pointed to a flat open on Monday as some solid corporate results weren't enough to persuade investors to revive a multi-week rally.

The S&P's seven-week-long advance came to an end last week, and the Nasdaq fell more than 2 percent as investors pulled back from outperforming technology shares.

The Dow, however, notched its eighth week of gains, its longest streak since a March-through-April run in 2010 when the index hit a high that stood for six weeks.

"It's going to be tough for us to move higher since we need to digest the long period we had of nice gains with little volatility," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.

"We'd need really very good earnings numbers and forecasts to continue up, and so far the numbers have been just OK."

Dow component McDonald's Corp fell 1.3 percent to $74 in premarket trading after reporting largely in-line fourth-quarter results.

Halliburton Co was flat at $39.19 in premarket trade after the oilfield services company reported a fourth-quarter profit that beat expectations, helped by a lower tax rate and stronger demand in its North American market.

S&P 500 futures rose 1.8 point 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 rose 12 points, and Nasdaq 100 futures gained 1 point.

More than 10 Dow components are set to report results this week, including American Express Co after Monday's close, Texas Instruments Inc and CSX Corp.

Sara Lee Corp will weigh an offer from a group of private equity firms that values the company at nearly $13 billion, a source said. Shares of the food company rose 3 percent to $19.27 before the bell.

Packaging and paper company RockTenn Co is buying Smurfit-Stone Container Corp for $3.5 billion. Smurfit-Stone surged 24 percent to $34.15 in premarket trading while RockTenn fell 1.6 percent to $56.25.

Investors will look to U.S. President Barack Obama's annual State of the Union address Tuesday night in an speech that will likely focus on jobs and economic growth.

The Federal Reserve's FOMC two-day meeting, which ends on Wednesday, will also draw significant interest. The Fed was expected to acknowledge brighter economic prospects without changing the course of its much-maligned bond buying program.

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