U.S. stock futures flat on oil, Marvell warning

NEW YORK, Oct 3 (Reuters) U.S. stock index futures pointed to a flat market open on Tuesday, with crude oil extending a decline and likely to weigh on energy stocks, while technology stocks may falter after a chip maker warned about earnings.

Oil fell close to a barrel on forecasts of a further increase in fuel inventories. Merrill Lynch cut the energy sector to ''underweight,'' saying earnings growth and pricing power have eroded. For details, see ID:nN03298711.

Marvell Technology Group Ltd cut its third-quarter revenue outlook on Monday and said it would restate past financial results due to problems with the way it accounted for stock options, sending its shares down 18 percent in extended-hours trading.

''That may take other PC and handset-related companies lower in sympathy. Marvell's probably not alone,'' said Arthur Hogan, chief market analyst for Jefferies&Co. ''They're just beating the Christmas rush to the preannouncement season.'' S&P 500 futures were down 1.5 points, barely above fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures fell 11 points, and Nasdaq 100 futures dipped 3 points.

The Dow Jones industrial average closed down 8.72 points, or 0.07 percent, at 11,670.35 on Monday. The Standard&Poor's 500 Index .SPX> ended down 4.53 points, or 0.34 percent, at 1,331.32. The Nasdaq Composite Index .IXIC> finished down 20.83 points, or 0.92 percent, at 2,237.60.

U.S. crude CLc1> fell 69 cents to .34 a barrel after hitting a low of .22 earlier, the lowest since Sept. 27.

Pepsi Bottling Group Inc. is the sole S&P 500 component set to report earnings on Tuesday, but investors will be on the alert for any preliminary earnings announcements.

Brokerage upgrades could help lift several stocks. Lehman Brothers lifted its rating on oil and gas producer Apache Corp.

and Citigroup upgraded Liberty Media Corp.

REUTERS KR HS1650