(Fixes typo in headline)
* Honeywell results top estimates
* British economy contracts unexpectedly
* Microsoft results, existing home sales on tap
* Futures up: Dow 8 pts, S&P 500 1.4 pts, Nasdaq 3.75 pts
By Chuck Mikolajczak
NEW YORK, Oct 23 (Reuters) - U.S. stock index futures rose slightly on Friday ahead of earnings from software giant Microsoft Corp and existing home sales data.
Microsoft's rose 1.4 percent to $26.97 in premarket trading ahead of its fiscal first-quarter results, which are due before the opening bell and one day after the closely watched launch of its Windows 7 operating software. Wall Street expects total revenue to fall to $12.4 billion from $15 billion a year earlier, according to a Thomson Reuters I/B/E/S poll.
Honeywell International Inc advanced 1.3 percent to $39.50 in premarket trade after the diversified manufacturer posted a 15 percent decline in profit but topped expectations.
After the closing bell Thursday, online retailer Amazon.com Inc posted earnings above expectations and its shares shot up almost 16 percent to $108.26 premarket.
"The futures have been vacillating back and forth. You had some nice earnings news from a handful of people," said Barry Ritholtz, director of equity research at Fusion IQ in New York.
"We see surprises every quarter because companies have gotten very astute at reducing expectations and then beating them."
S&P 500 futures rose 1.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 8 points, and Nasdaq futures gained 3.75 points.
Sales of previously owned homes likely rebounded in September after a surprise fall in August, boosted by a government incentive for first-time buyers, low prices and attractive mortgage rates.
A Reuters survey of 65 economists indicated existing home sales at 5.35 million units in September at a seasonally adjusted annual rate. That would be up from 5.10 million in August. The data is due at 10 a.m. EDT.
Schlumberger Ltd added 0.4 percent to $68.89 in light trading Friday after the oilfield services leader reported third-quarter earnings that beat estimates by 2 cents.
Britain's economy contracted unexpectedly in the third quarter of this year, the government said Friday, quashing hopes the downturn was ending, and marked the longest recession on record.
European stocks rose broadly early Friday, as buoyant banking and mining shares helped reverse a drop in the previous session.
U.S. stocks rose Thursday, with the Dow industrials closing back above 10,000 after quarterly results from insurer Travelers Cos Inc and regional bank PNC Financial Services Group Inc boosted financial stocks.