Futures lower as oil prices retreat

By Abhiram Nandakumar

(Reuters) - U.S. stock index futures were lower on Monday after last week's rally in oil prices lost steam.

* Crude prices resumed their slide after a strong two-day rally as output from Iraq reached record highs. [O/R]

* U.S. stocks logged their first positive week of the year last week, with the three indexes closing up 2 percent on Friday.

* All eyes will be on the U.S. Federal Reserve's next move on interest rates when the Federal Open Market Committee meets on Jan. 26-27.

* Investors, already rattled by the volatile start to the year and a persistent decline in oil prices, now turn to quarterly corporate results with lowered expectations.

* Quarterly profits at S&P 500 companies are expected to fall 4.3 percent, according to Thomson Reuters data. Excluding energy companies, earnings are estimated to grow by 1.7 percent.

* Dow component McDonald's is scheduled to report results before the bell.

* Tyco International's shares soared 14.4 percent to $27.71 premarket after Johnson Controls Inc said it would merge with the Ireland-based fire protection and security systems maker.

* Twitter was down 5.5 percent at $16.85 after Chief Executive Jack Dorsey said four senior executives would leave the social media company.

* Caterpillar was down 2.6 percent at $59.40 after Goldman Sachs cut its rating on the stock to "sell".

Futures snapshot at 6:56 a.m. ET:

* Dow e-minis were down 51 points, or 0.32 percent, with 34,652 contracts changing hands.

* S&P 500 e-minis were down 4.5 points, or 0.24 percent, with 203,363 contracts traded.

* Nasdaq 100 e-minis were down 12.5 points, or 0.29 percent, on volume of 41,100 contracts.

(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Anil D'Silva)