US STOCKS-Wall Street set to edge higher as inflation fears fade

Reuters

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    * Dow Jones lags for the week on weakness in industrials
    * S&P 500, Nasdaq set for mild weekly gains
    * Royal Caribbean down after guests test COVID-19 positive
    * Futures up: Dow 0.2%, S&P, Nasdaq 0.1% 

 (Adds comment, updates prices)
    By Ambar Warrick and Devik Jain
    June 11 (Reuters) - U.S. stock indexes were set to inch up
on Friday after inflation data calmed concerns over a possible
long-term spike in consumer prices, with focus turning to next
week's Federal Reserve meeting for more cues on monetary policy.
    The S&P 500  .SPX  had surged to a record high on Thursday
as investors scaled back expectations for early policy
tightening by the Fed, with May's consumer price data suggesting
that a recent spike in inflation would be transitory.
 urn:newsml:reuters.com:*:nL2N2NR2Q5
    Much of the price surge in May came from items such as
commodities and airfares and it is expected to be temporary.
    With recent data also indicating weakness in the labor
market, the Fed is widely expected to maintain accommodative
policy, which is positive for stocks and other risk-driven
assets.
    "The commentary will be that they're still focusing on the
last two employment reports, which were much weaker than
anticipated. And so the Fed will have to wait for additional
data before even talking about tapering," said Sam Stovall,
chief investment strategist at CFRA Research in New York.
    "This meeting coming up plus the meeting in late July will
probably result in no policy changes, or even contemplation of
policy changes."
    U.S. S&P 500 E-minis  EScv1  were up 5.75 points, or 0.14%,
at 08:02 a.m. EDT. Dow E-minis  1YMcv1  were up 68 points, or
0.2%, while Nasdaq 100 E-minis  NQcv1  were up 17.25 points, or
0.12%
    The S&P 500 and the Nasdaq  .IXIC  were set for mild weekly
gains, as a lack of major catalysts and a summer lull in trading
saw them move in a tight range.
    But weakness in major industrial stocks saw the Dow Jones
 .DJI  set for a weekly loss amid doubts over whether President
Joe Biden's $2.3 trillion infrastructure spending plan would
come to pass.
    Cruise operators fell in premarket trade, with Royal
Caribbean Group  RCL.N  shedding 2% after two guests on its
Celebrity Millennium ship tested positive for COVID-19.
 urn:newsml:reuters.com:*:nL3N2NT2OV
    Stocks favored by small-time retail investors that have
dominated trading volumes in recent weeks were set to close
higher for the week, even as a rally appeared to be running out
of steam on Thursday. Most of the so-called "meme" stocks rose
in premarket trade.  urn:newsml:reuters.com:*:nL3N2NT2GT

 (Reporting by Ambar Warrick and Devik Jain in Bengaluru;
Editing by Maju Samuel)
 ((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters
Messaging: ambar.warrick.thomsonreuters.com@reuters.net;
Twitter: @AmbarWarrick))

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