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* Quadruple witching could push up volumes, volatility
* All three major indexes set for weekly gains
* Retail stocks gain on prospect of strong holiday demand
* Futures: S&P, Dow and Nasdaq flat
(Adds comment, updates prices)
By Ambar Warrick and Shreyashi Sanyal
Dec 18 (Reuters) - Wall Street indexes were set to take a
breather from recent gains on Friday as a coronavirus stimulus
package remained in focus ahead of a weekend deadline for a
deal, with retail stocks rising on the possibility of strong
holiday sales.
Markets are likely to see increased trading volumes in the
day due to the expiration of stock index futures, stock index
options, stock options and single stock futures at the end of
trade - also known as quadruple witching.
Retail stocks including those of Kohl's Corp KSS.N ,
Walmart Inc WMT.N and Macy's Inc M.N rose between 0.3% and
2.2% in premarket trading after the National Retail Federation
flagged the possibility of high pre-Christmas demand.
"The market is a little bit skeptical because the stopwatch
is on and time is running out, people want to see the deal
actually inked," said Thomas Hayes, managing member at Great
Hill Capital LLC in New York.
"The stimulus getting approved would be bullish for the
retail sector because the vast majority of that money will go
right into holiday shopping on expectation of receiving those
stimulus checks even if they come after Christmas."
U.S. S&P 500 E-minis EScv1 were up 1 point, or 0.03% at
8:06 a.m. ET, Dow E-minis 1YMcv1 were up 6 points, or 0.02%,
while Nasdaq 100 E-minis NQcv1 were up 2.25 points, or 0.02%.
Wall Street's three major indexes had ended at record highs
on Thursday as the passing of a bill seemed imminent, with
bipartisan lawmakers saying the COVID-19 pandemic's worsening
toll meant that failure to agree on new stimulus was no longer
an option.
Dismal retail sales data and unemployment claims through the
week were also seen as furthering the case for more stimulus.
The prospect of continued monetary and fiscal stimulus has
helped stocks look past the economic ructions from the virus,
and set them up for strong annual gains, despite a rocky start
to the year.
"What we will see is that there will be no grinch this
Christmas cause Santa Claus is coming to town and we will get
something done," Hayes added.
Wall Street indexes were set to end the week higher, with
the Nasdaq .IXIC set to outperform its peers with a 3.1% gain
on sustained buying into technology stocks.
Microsoft Corp MSFT.O shed 0.6% after the tech major said
it found malicious software in its systems related to a massive
hacking campaign disclosed by U.S. officials this week.
FedEx Corp FDX.N fell 2.8% after the package delivery
company declined to give an earnings forecast for 2021, even as
its quarterly profit almost doubled. Shares of rival United Parcel Service Inc UPS.N also
declined 1.2%.
Centene Corp CNC.N dropped 2.5% after the health insurer
forecast 2021 adjusted profit below Wall Street estimates, as it
said enrollment in its Obamacare plans was not coming in as
expected.
Moderna Inc's MRNA.O shares pared early losses after
outgoing President Donald Trump tweeted that the drugmaker's
COVID-19 vaccine had been approved for use, although the U.S.
Food and Drug Administration has made no public announcement yet
regarding its decision.