* Dollar slips as short-covering runs out
* Dow Chemical qtrly sales rise, profit falls
* Futures up: S&P 1.7 pts, Dow 28 pts, Nasdaq 2.5 pts
NEW YORK, Oct 28 (Reuters) - U.S. stock index futures rose modestly on Thursday as the dollar slipped, while investors took in another round of earnings and data on the labor market, due later in the morning.
* The greenback eased as a short-covering rally ran out of steam. Equities and the dollar have developed an inverse relationship, exacerbated by expectations the U.S. Federal Reserve will announce another round of quantitative easing next week.
* Expectations of Fed action has been a driver of market action of late as investors speculate over the size and time frame of further monetary stimulus.
* Most leading economists expect the Fed to buy between $80 billion and $100 billion worth of assets per month under a new program to bolster the struggling economy, a Reuters poll found.
* Dow Chemical Co reported early Thursday that its quarterly profit fell, but sales rose across the globe and in all units. Its shares were up 1.5 percent at $31.69 in light premarket volume.
* Colgate-Palmolive Co posted a higher-than-expected profit, but said increased costs would pressure 2011 earnings growth.
* In a busy earnings day, earnings are also expected from Exxon Mobil Corp and 3M Co.
* Weekly initial jobless claims are on tap at 8:30 a.m. EDT (1230 GMT). The number of U.S. workers filing new claims for benefits is expected to have ticked up to 453,000 from 452,000, according to a Reuters survey of 46 economists.
* S&P 500 futures added 1.7 points 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 28 points, and Nasdaq 100 futures gained 2.5 points.
* Stocks fell Wednesday as investors dialed back expectations of how aggressively the Fed would act to stimulate the economy.