US STOCKS-Wall St set to open higher after Yellen’s dovish stance

* Weekly jobless claims falls first time in a month

* June PPI comes in above expectation

* Target rises as higher quarterly sales forecast

* Futures higher: Dow 11 pts, S&P 2.75 pts, Nasdaq 11.25 pts
(Adds details, comment, updates prices)

By Ankur Banerjee and Tanya Agrawal

July 13 (Reuters) – U.S. stocks looked set to open higher on
Thursday, a day after Federal Reserve Chair Janet Yellen’s
dovish stand on interest rates allayed investor fears of a
tighter monetary policy.

Yellen’s comments were part of her two-day semi-annual
monetary policy testimony before the Senate Banking Committee.
She will resume her testimony at 10 a.m. ET (1400 GMT).

Investor cheered Yellen’s view of gradual increase in rates
on Wednesday, with world shares hitting their fourth all-time
high in less than a month on Thursday.

The Dow rose to a record high close while U.S. stocks kept
their upward momentum on Wednesday following Yellen’s comments.

The U.S. economy is healthy enough for the Fed to raise
rates and begin winding down its massive bond portfolio, though
low inflation and a low neutral rate may leave the central bank
with diminished leeway, Yellen said.

The U.S. economy grew at a “slight to moderate” pace over
the last several weeks across all regions of the country, with
wage pressures reported for both low- and high-skilled jobs, the
Federal Reserve reported on Wednesday in its latest compendium
of regional economic activity.

“Her speech was labeled as dovish due to no signs of any
aggressive rate hikes or having a firm plan in relation to
scaling down their balance sheet,” said Naeem Aslam, chief
market analyst at Think Markets UK.

Dow e-minis were up 11 points, or 0.05 percent, with
15,283 contracts changing hands at 8:40 a.m. ET (1240 GMT).

S&P 500 e-minis were up 2.75 points, or 0.11 percent,
with 121,088 contracts traded.

Nasdaq 100 e-minis were up 11.25 points, or 0.19
percent, on volume of 29,954 contracts.

Data showed U.S. producer prices unexpectedly rose in June
as sustained increases in the cost of services offset declining
energy prices, suggesting a recent moderation in inflation was
likely temporary.

In the 12 months through June the producer level inflation,
or PPI, increased 2.0 percent, above the 1.9 percent rise
expected.

Data from the U.S. Labor Department showed jobless claims
falling last week for the first time in a month. Initial claims
for state unemployment benefits dropped to 247,000 for the week
ended July 8, from 248,000.

On the stocks, Delta shares were down 1.3 percent in
premarket trading, after the No.2 U.S. airline’s quarterly
profit missed analysts’ expectations.

Target rose 5.5 percent after the retailer said it
expects a “modest” increase in second-quarter comparable sales,
the first rise in five quarters.

Yandex jumped 21 percent after the company and Uber
agreed to combine their Russian ride-sharing businesses.
(Reporting by Ankur Banerjee and Tanya Agrawal in Bengaluru;
Editing by Arun Koyyur)


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