US STOCKS-Wall Street to open flat; UPS warning offsets bank results

Last Updated: Fri, Jul 12, 2013 13:20 hrs

* JPMorgan profit jumps in quarter

* UPS falls after lowering profit outlook

* Futures: Dow up 5 pts, S&P off 0.8 pt, Nasdaq up 1.25 pt

By Chuck Mikolajczak

NEW YORK, July 12 (Reuters) - U.S. stocks were set to open little changed on Friday after closing at fresh record highs a day earlier, as rosy results from JPMorgan and Wells Fargo were offset by a profit warning from United Parcel Service.

The S&P 500 index and the Dow industrials closed at record highs on Thursday, after Federal Reserve Chairman Ben Bernanke said the U.S. central bank will keep monetary policy loose for some time to lower the unemployment rate.

JPMorgan Chase & Co, the largest U.S. bank by assets, advanced 0.4 percent to $55.35 in premarket trading. The bank reported a 31 percent jump in quarterly profit as trading revenue rebounded.

Shares of Wells Fargo & Co climbed 1 percent to percent to $42.30 in premarket trading after the biggest U.S. mortgage lender reported a higher-than-expected 20 percent rise in quarterly profit.

But United Parcel Service Inc dropped 4.6 percent to $87.29 after the world's No.1 package delivery company estimated second-quarter profit would be below analysts' expectations due to overcapacity in the world freight market. Rival FedEx Corp shed 2 percent to $102.35.

"Wells Fargo and JPMorgan have come in with better than expected numbers. UPS is probably not a surprise given ongoing downward revisions in guidance," said Fred Dickson, chief market strategist, D.A. Davidson & Co. Lake Oswego, Oregon.

"We'll go a little bit higher, consolidate gains, maybe take a little profit going into the weekend and investors are going to sit back and wait for the tidal wave of earnings next week."

Data showed the seasonally adjusted producer price index increased 0.8 percent last month, above expectations calling for a 0.5 percent increase. Excluding volatile food and energy costs, core producer prices, rose 0.2 percent last month, versus expectations for a rise of 0.1 percent.

The benchmark S&P index has risen 3.8 percent over the past six sessions. That's its longest winning streak since early March, when the index climbed for seven sessions on positive data, hopes for rosy results and signals from the Fed that it would continue to backstop the economy.

The Thomson Reuters/University of Michigan Surveys of Consumers preliminary July consumer sentiment index is scheduled for release at 9:55 a.m. (1355 GMT). Economists in a Reuters survey expect a reading of 85.0 compared with 84.1 in the final June report.

S&P 500 futures edged down 0.8 point, about even with 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 5 points, and Nasdaq 100 futures gained 1.25 points.

Analysts expect S&P 500 companies' second-quarter earnings to have grown 2.5 percent from a year earlier, with revenue up 1.5 percent, according to Thomson Reuters data.

U.S.-listed shares of Infosys jumped 8.3 percent to $47.70 in premarket trade after reporting quarterly results and maintaining its revenue growth forecast.

Valero Energy Corp dipped 3.5 percent to $33.35 before the opening bell. The U.S. refining company said it expects lower second-quarter earnings due to a rise in the price of some of the crude oil it processes.

More from Sify: