U.S. stock futures signal pause in rally

* U.S. stock index futures pointed to a pause in the rally
on Wall Street on Friday, with futures for the S&P 500 (SPc1: )
down 0.15 percent, Dow Jones (DJc1: ) futures down 0.06 percent
and Nasdaq 100 (NDc1: ) futures down 0.03 percent at 0705 GMT.

* European stocks were up 0.4 pct in morning trade, gaining
ground for an eighth straight session, led by banking stocks
such as Banco Santander (SAN.MC: ) and Societe Generale (SOGN.PA: ).

* The euro held at three-week highs on Friday, on track for
its second straight week of gains, while the dollar appeared
vulnerable to further losses after falling below a key chart

* Oil futures dipped in the wake of sluggish economic
indicators that raised doubts about the sustainability of a
recent acceleration in demand growth by top oil consumer the
United States.

* Europe’s fiscal problems are a risk that will have some
effect on U.S. growth during the rest of this year and 2011,
U.S. Federal Reserve vice chairman Donald Kohn said in an
interview with the Wall Street Journal.

* A Democratic bill to extend jobless benefits and raise
taxes on investment fund managers failed a key vote in the U.S.
Senate on Thursday, dealing a blow to President Barack Obama’s
push to boost the economy. [ID:nN17274429]

* Motorola Inc (MOT.N: ) will buy back most of its debt and
pump the bulk of its remaining cash into its proposed spinoff of
its money-losing mobile devices unit, the Wall Street Journal
said, citing people familiar with the matter.

* Kohlberg Kravis Roberts & Co [KKR.UL] said on Friday it
would buy Intelligence Ltd, a unit of cable broadcaster Usen
Corp (4842.OJ: ), for 32.5 billion yen ($357 million), making it
the private equity giant’s first significant deal in Japan.

* Bayer (BAYGn.DE: ) said Teva’s (TEVA.TA: ) U.S. unit admitted
in a court proceeding on Wednesday that some of the information
included on packages of its oral contraceptive Gianvi was false
and agreed to correct its labeling. [ID:nSGE65G0IF]

* U.S. stocks (Read more about the stock market today. ) edged higher late in a choppy, thinly traded
session on Thursday as investors built on momentum gained after
the S&P 500 index broke through its 200-day moving average
earlier this week.

* The Dow Jones industrial average (.DJI: ) gained 24.71
points, or 0.24 percent, to 10,434.17. The Standard & Poor’s 500
Index (.SPX: ) added 1.43 points, or 0.13 percent, to 1,116.04.
The Nasdaq Composite Index (.IXIC: ) inched up 1.23 points, or
0.05 percent, to 2,307.16.

* The S&P 500 moved above its 200-day moving average for the
first time in a month on Tuesday. Some investors see that as a
bullish momentum signal.

* On the macro front, investors awaited the Economic Cycle
Research Institute’s (ECRI) weekly index of economic activity,
due at 1430 GMT.

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(Reporting by Blaise Robinson; Editing by Hans Peters)

U.S. stock futures signal pause in rally