Indications: U.S. stock futures up as investors eye Europe

A prior version of this story gave incorrect figures for U.S. stock market futures owing to a data error. The story has been corrected.

NEW YORK (MarketWatch) � U.S. stock-market futures pointed to gains for Wall Street on Tuesday, but caution remained the byword as investors continued to monitor the European debt crisis and rising bond yields for Spain and Italy.

Stock futures held gains after the Labor Department reported U.S. import prices fell 1% in May, the largest monthly drop in nearly two years.

Futures for the Dow Jones Industrial Average DJU2 �rose 56 points, or 0.5%, to 12,366.

S&P 500 futures SPU2 �rose 4.10 points, or 0.3%, to 1,304.40, while Nasdaq 100 futures NDU2 �rose 9.25 points, or 0.4%, to 2,519.25.

Investors are keeping a close eye on the European sovereign-debt crisis. Wall Street stocks tumbled the prior day amid investor concern about elections in Greece this weekend, a potential bailout for Cyprus and the details of a Spain bank loan package.

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Yields in Spain and Italy shot higher in Europe�s afternoon session on Monday, taking many in the markets by surprise as brief optimism over Spain�s bank deal was replaced by questions and concerns about its details.

�Yesterday�s quick fading of euphoria shows we are moving to a more critical stage as far as ongoing euro problems are concerned,� said Peter Cardillo, chief market economist, Rockwell Global Capital.

�The focus is now turning to Greek elections and Italy. I think it�s going to be a week of extreme volatility. Adding to that, we�ve got quadruple options expirations this Friday,� said Cardillo.

Peripheral European yields were again on the rise Tuesday, with the yield on Spain�s 10-year government bond ES:10YR_ESP �up 14 basis points to 6.67% and those for Italy IT:10YR_ITA � jumping 10 basis points to 6.14%.

The Stoxx Europe 600 index XX:SXXP �was flat at 242.13.

`Significant risk� of 7% Spanish yield

�We see a significant risk that 10-year Spanish bond yields could rise above 7% in the coming days, which returns the ball to the [European Central Bank�s] court,� said analysts at Danske Bank in a note to investors Tuesday. They added that the ECB is unlikely to step in with any support before the June 17 Greek elections.

If those yields continue higher, fixed-income markets will continue to get nervous, pushing investors toward German and U.S. bonds, the analysts said.

On Monday, the Dow Jones Industrial Average DJIA �slid 142.97 points, or 1.1%, at 12,411.23, after a 96-point rise earlier in the session. The S&P 500 index SPX �fell 1.3% and the Nasdaq Composite Index COMP �fell 1.7%.

Corporates

In corporate news, Michael Kors Holdings Ltd. KORS � shares were up in premarket trading after the designer reported fiscal fourth-quarter profit jumped.

/quotes/zigman/7705184/quotes/nls/kors KORS 42.67, -0.22, -0.51%

In the tech sector, shares of Texas Instruments Inc. TXN �could be active after the chip maker narrowed its second-quarter outlook late Monday.

Seagate Technology Ltd. STX �shares rose in pre-open trade. David Einhorn�s Greenlight Capital said it increased its stake in the hard-drive maker to 23.1 million shares as of June 1 from 14.5 million at March 31.

Juniper Networks Inc. JNPR �could also be active. The networking-equipment company unveiled a new program to buy back as much as $1 billion of stock.

Most Asian stocks retreated Tuesday as investors fretted over Spain�s bailout and the Greek election loomed.

Crude oil for July delivery �gained 3 cents to $82.73 a barrel.

Gold for August delivery GCQ2 �added $7.80 to $1,604.6.

The euro last traded at $1.2502 against the dollar EURUSD �, versus a $1.2491 level late in North American trade on Monday.