Stocks set for slight gains

Futures narrowly higher as investors mull when Fed will cut rates; bank earnings loom.

NEW YORK (CNNMoney.com) -- U.S. stocks futures gained early Monday, lifted by hopes that the Federal Reserve would step in with an emergency rate cut, although looming bank earnings remained a worry.
At 4:53 a.m. ET, S&P 500 and Nasdaq futures were narrowly higher, hinting at a flat to slightly positive start for Wall Street.
Stocks tanked last week on increasing concerns about the economy, but the darkening outlook has also raised hopes that the Fed would slash rates before its next meeting.
A report in the Wall Street Journal said the Fed is unlikely to cut rates before its next meeting on Jan. 29-30 because Fed Chairman Ben Bernanke has already "recalibrated market expectations." But that could change if the outlook dramatically worsens, the report added.
Investors have been haunted by recession worries recently, and earnings results due this week from a number of big banks could spark more fears. Embattled banks Citigroup (C, Fortune 500) and Merrill Lynch (MER, Fortune 500) are both expected to take giant writedowns when they post their results.
In global trade, Asian markets tumbled. Japanese markets were closed for a holiday. European stocks edged higher in morning trading.