* Futures up: Dow 40 pts, S&P 3 pts, Nasdaq 9 pts
By Tanya Agrawal
May 23 U.S. stock index futures were modestly
higher on Tuesday, shrugging off a deadly bomb blast in Britain
and ahead of U.S. President Donald Trump's first full budget
plan that is aimed at slashing government spending.
* U.S. futures slipped slightly on Monday evening, before
recovering, on news of the suicide attack that killed at least
22 people and wounded 59 at a pop concert in the English city of
* European stocks edged up after a sluggish start on
* Trump's budget proposals includes chopping government
spending over the next decade by $3.6 trillion, including
through cuts to healthcare and food assistance programs for the
poor, with the aim of balancing the budget in 10 years.
* The plan also includes selling off half the country's huge
oil stockpile, a proposal that weighed on crude oil prices as it
threatened a future glut even as OPEC and its allies cut output
to try and tighten the market.
* Congress holds the federal purse strings and often ignores
presidential budgets, which are proposals and may not take
effect in its current form.
* Wall Street closed higher on Monday boosted by technology
shares and by defense companies, which gained after the United
States and Saudi Arabia signed a $110 billion arms deal.
* The deal was struck during Trump's visit to Saudi Arabia
over the weekend, a trip the White House hopes will shift focus
away from domestic controversies such as the president's firing
of the former Federal Bureau of Investigation chief and probes
into his administration's possible links to Russia.
* Investors are becoming increasingly concerned that Trump's
political problems will make his economic-friendly policies,
such as tax cuts and boosting infrastructure spending difficult,
to pass through Congress.
* Among stocks, shares of Toll Brothers rose 2.5
percent to $39 after the luxury homebuilder reported a 40
percent rise in quarterly profit.
* U.S.-listed shares of Nokia were up 6.2 percent at
$6.59 after the company settled a patent dispute with Apple
. Apple was marginally higher at $154.20.
* Videogame maker Take-Two fell 3.3 percent to
$66.78 after it forecast full-year revenue well below analysts'
* Economic data due includes a report that is expected to
show new home sales declines 1.5 percent in April, compared with
a 5.8 percent rise in March. The report from the U.S. Commerce
Department is due at 10 a.m. ET (1400 GMT).
* Separately, Markit Manufacturing Flash PMI for May is
likely to come in at 53 vs a final reading of 52.8 in April.
Futures snapshot at 6:55 a.m. ET:
* Dow e-minis were up 40 points, or 0.19 percent,
with 25,403 contracts changing hands.
* S&P 500 e-minis were up 3 points, or 0.13 percent,
with 158,939 contracts traded.
* Nasdaq 100 e-minis were up 9 points, or 0.16
percent, on volume of 28,056 contracts.
(Reporting by Tanya Agrawal; Editing by Savio D'Souza)