February 17, 2017 / 12:45 PM / a year ago

US STOCKS-Futures dip as Wall St rally loses momentum

* Futures down: Dow 40 pts, S&P 4.5 pts, Nasdaq 6.25 pts

By Yashaswini Swamynathan

Feb 17 (Reuters) - U.S. stock index futures fell for the second straight day on Friday, after a record-setting few days on Wall Street, as investors await clarity on economic policy and ahead of a long weekend.

* The S&P 500 has rise about 5 percent so far in 2017, with the Dow Jones Industrial Average up 4 percent, mainly on signs of an improving economy and promises by President Donald Trump to cut corporate taxes and reduce financial regulations.

* Now, with a strong fourth-quarter earnings season mostly complete, many investors say they need concrete signs of progress from Trump to justify more gains.

* Trump used his first solo news conference on Thursday to lash out at reporters on what he viewed as unfair coverage of his first few weeks in office.

* The Dow Jones Industrial Average managed to close at a record high for the sixth straight session on Thursday, but losses in energy shares caused the S&P to snap a seven-day winning streak.

* The lack of key economic data and a long weekend due to the Presidents Day holiday on Monday is also likely to keep investors from taking new positions.

* Banks stocks, which have outperformed other sectors in the so-called “Trump trade”, dropped in premarket trading as investors booked profits.

* Morgan Stanley, Wells Fargo and Citigroup were the biggest losers, falling more than 1 percent.

* Dow component UnitedHealth slipped 3.1 percent to $158.50 after the Justice Department joined a whistleblower lawsuit against the health insurer.

* Kraft jumped 4.4 percent after it offered to buy Unilever. Despite rejecting the offer, Unilever’s U.S.-listed shares jumped 11 percent.

* Mondelez, rumored to be a Kraft acquisition target, dropped more than 6 percent.

Futures snapshot at 7:06 a.m. ET:

* Dow e-minis were down 40 points, or 0.19 percent, with 23,975 contracts changing hands.

* S&P 500 e-minis were down 4.5 points, or 0.19 percent, with 116,905 contracts traded.

* Nasdaq 100 e-minis were down 6.25 points, or 0.12 percent, on volume of 21,148 contracts. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D’Souza)

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