US STOCKS-Futures gain after 3-day drop but Wall St set for weekly loss
* U.S. House passes bill for $633 bln in defense spending
* Nov producer price index data on tap
* Futures up: Dow 7 pts, S&P 6.4 pts, Nasdaq 14 pts
NEW YORK, Dec 13 (Reuters) - U.S. stock index futures edged higher on Friday, rebounding after a three-day decline on Wall Street, though market participants remained cautious ahead of a Federal Reserve policy meeting next week.
The S&P 500 index was on track to end the week lower. As of Thursday's close, the benchmark was set for its worst decline since the end of August.
Global equities were headed for their biggest two-week drop since June and the dollar hit 5-year highs against the yen on Friday amid concern the U.S. Federal Reserve could decide to start scaling back stimulus at its policy meeting on Dec. 16-17.
"The biggest component on investors' mindset is the Fed tapering factor. Other than that, we are entering the year-end and investors are looking to hold onto gains. There won't be any erratic move," said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.
Investors in U.S.-based funds pulled $6.51 billion out of stock mutual funds in the week ended Wednesday, the biggest weekly outflow this year, on worries over an imminent wind-down of Fed bond purchases, data from Thomson Reuters' Lipper service showed on Thursday.
The U.S. House of Representatives overwhelmingly approved an annual defense policy bill on Thursday, authorizing $633 billion in spending for 2014, strengthening protections for victims of sexual assault in the military and easing some transfers from the prison at Guantanamo Bay in Cuba.
S&P 500 futures rose 6.4 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 7 points and Nasdaq 100 futures added 14 points.
Economic data expected on Friday includes the November producer price index at 8:30 a.m. EST (1330 GMT). There are no S&P 500 companies scheduled to report earnings.
Anadarko Petroleum Corp and its Kerr-McGee unit acted with "intent to hinder" when they spun off Tronox, a paint materials company that later went bankrupt, and should pay billions of dollars in environmental cleanup costs, a judge ruled on Thursday. The decision had been awaited for about a year since a trial wrapped up in late 2012. The stock fell nearly 11 percent in premarket trading.
Twitter Inc was forced to nix a change to its "block" feature on Thursday after attracting a wave of protest from users who said the new policy empowered perpetrators of online abuse.