US STOCKS-Wall St set to open near record highs on stimulus hopes

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* PepsiCo rises after predicting revenue growth in 2021
* Cannabis shares extend rally
* Weekly jobless claims edge down
* Futures up: Dow 0.24%, S&P 0.35%, Nasdaq 0.52%

(Adds comment, details; updates prices)
By Medha Singh and Devik Jain
Feb 11 (Reuters) - Wall Street's main indexes were set to
rise on Thursday as investors bet on more fiscal stimulus to
ride out a coronavirus-driven recession with data showing a
nascent recovery in the labor market was stalling.
The number of Americans filing new applications for
unemployment benefits were 793,000 last week, compared to
812,000 in the prior week, but they are well below the record
6.867 million reported last March when the pandemic hit the
United States. Wall Street's main indexes had hit record highs recently on
prospects of a $1.9 trillion coronavirus relief package to
jumpstart the economy with market participants pivoting to
economy-linked energy and bank stocks from tech-related names.
A largely better-than-expected earnings season has also
lifted the sentiment, quelling fears of lofty valuations.
Analysts now expect fourth-quarter earnings for S&P 500 firms to
grow 2.8%, versus a forecast of 10.3% drop at the beginning of
January, per Refinitiv data.
"The earnings continue to propel the market higher along
with stimulus talks and Fed's willingness to stay tact is
creating a very strong enthusiasm," said Peter Cardillo, chief
market economist at Spartan Capital Securities in New York.
"(But) the trading pattern over the past several days
suggests that the market may be suffering from fatigue and has
stepped in very overbought situation."
Pictet Group's asset management arm expects the S&P 500 to
rise 10% from its current levels, with help from improving
economic growth and easy monetary policy.
Federal Reserve Chairman Jerome Powell reassured investors
on Wednesday that interest rates will remain low for some time
to spur the economy and jobs growth, but provided no new
insights on monetary policy. At 8:39 a.m. ET, Dow e-minis 1YMcv1 were up 76 points, or
0.24%, S&P 500 e-minis EScv1 were up 13.5 points, or 0.35%,
and Nasdaq 100 e-minis NQcv1 were up 70.75 points, or 0.52%.
Pinterest Inc PINS.N rose 7.1% premarket after a report
said Microsoft Corp MSFT.O approached the image-sharing
company in recent months about a potential buyout. The
negotiations were, however, currently not active, according to
the report. PepsiCo Inc PEP.O rose 0.6% after the snack and beverage
giant topped analyst estimates for fourth-quarter revenue and
said it expects organic revenue to grow in 2021 as economies
reopen and COVID-19 vaccinations roll out. Casino operator MGM Resorts MGM.N dropped 2.4% after
posting a bigger-than-expected loss, hurt by COVID-19 travel
restrictions but signaled a pickup in demand later this year.
U.S.-listed shares of cannabis companies including Tilray
TLRY.O and Aphria APHA.O jumped between 11% and 13% after
the sector caught the attention of retail traders on Wednesday
on forums such as Reddit's WallStreetBets that had fueled
GameStop's GME.N recent rally. Walt Disney Co DIS.N edged 0.2% lower ahead of its results
after market close, when the media company will update Wall
Street about its digital subscriber membership and the future of
its pandemic-hobbled theme parks.