US STOCKS-Wall St set for flat open; State Street boosts

* State Street jumps on earnings outlook

* Family Dollar’s forecast weighs on shares

* Futures: S&P 500 up 0.5 pts, Dow up 8; Nasdaq down 4.8

* For up-to-the-minute market news see [STXNEWS/US]

(Updates market activity)

By Edward Krudy

NEW YORK, July 7 (BestGrowthStock) – U.S. stock index futures
pointed to flat open on Wall Street on Wednesday as a higher
earnings outlook from bank State Street Corp offset worries
about a slowdown in the global economy.

State Street (STT.N: ), the world’s second-largest custody
bank, forecast its second-quarter operating earnings to beat
analysts’ expectations, which reinforced hopes of strong
earnings from some financials and sent the bank’s shares up 7.4
percent in premarket trade.

“There is a a belief that banks, excluding the banks
heavily exposed to trading … are going to have a very strong
quarter, and I think State Street is the first evidence of
that,” said Tim Ghriskey, chief investment officer of Solaris
Asset Management in Bedford Hills, New York.

The news helped to offset pessimism when stocks struggled
to make headway on Tuesday, with buyers evaporating in the
afternoon in what has become a familiar pattern over the past
two months.

Concerns about economic growth in the euro zone had pushed
shares lower earlier on Wednesday.

S&P 500 futures (SPc1: ) rose 0.5 points and were just 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 (DJc1: ) rose 13
points, but Nasdaq 100 futures (NDc1: ) lost 4.8 points.

UBS lowered its year-end S&P 500 price target to 1,150 from
1,350 to reflect modestly weaker earnings growth and
longer-term secular headwinds.

The S&P 500 index has fallen more than 15 percent since a
recent peak on April 23 and is down 7.8 percent since the start
of the year.

Family Dollar Stores Inc (FDO.N: ) posted higher quarterly
profit as customers sought cheaper products in the face of high
unemployment, but the discount chain forecast fourth-quarter
earnings below expectations. [ID:nSGE6660EP]. The shares fell
about 5.5 percent in premarket trade to $37.25.

BP Plc (BP.L: )(BP.N: ) Chief Executive Tony Hayward met with
officials from Abu Dhabi’s investment authority as speculation
mounted the sovereign fund would make a fresh investment. BP’s
New York-traded shares rose 2.5 percent to $32.71 in premarket
(Editing by Padraic Cassidy)

US STOCKS-Wall St set for flat open; State Street boosts