Stock index futures pared losses on Monday even as investors worried that Spain's bailout of a local bank could be a sign of more problems in Europe's banking system.

* S&P 500 futures fell 3.3 points and were below 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 dropped 21 points, and Nasdaq 100 futures lost 8.25 points.

(Reporting by Edward Krudy; Editing by Padraic Cassidy)