US STOCKS-Futures point to flat open with indexes at records

Wed Aug 27, 2014 8:47am EDT
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* Upswing seen as intact but volume has been light

* Few catalysts seen driving trading

* Futures up: Dow 10 pts, S&P 0.25 pt, Nasdaq 0.5 pt (Updates prices, adds Chico's results)

By Ryan Vlastelica

NEW YORK, Aug 27 (Reuters) - U.S. stock index futures pointed to a flat open on Wednesday, as investors found few reasons to keep buying after a rally that has taken indexes to repeated records, even as there was little seen on the horizon that could derail the rally.

* On Tuesday, the S&P 500 closed above 2,000 for the first time while the Dow ended near a record high. Both indexes have risen in 10 of the past 13 sessions, and the S&P has closed at a record 30 times this year, according to S&P Dow Jones Indices.

* The S&P's price-to-earnings ratio is within historical norms, suggesting stocks are not overvalued, even at record levels. Nonetheless, further pronounced gains may be a challenge, given the few positive catalysts as well as potential headwinds like a reduction in U.S. Federal Reserve stimulus and the conflict between Ukraine and Russia.

* Markets haven't undergone a correction since 2012, giving analysts another reason to expect a pullback. Much of the recent gains have come on low volume, suggesting investors are reluctant to jump in at current levels.

* S&P 500 e-mini futures rose 0.25 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 e-mini futures rose 10 points and Nasdaq 100 e-mini futures added 0.5 point.   Continued...