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US STOCKS-Wall Street set to gain modestly, bank results perused

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* Futures up: Dow 24 pts, S&P 1.3 pts, Nasdaq 4 pts

* JP Morgan surges early after earnings, then drops

* Consumer sentiment data on tap

* AMD drops after revenue warning

(Adds PPI data, updates prices)

By Chuck Mikolajczak

NEW YORK, Oct 12 (Reuters) - U.S. stocks were poised formodest gains at the open on Friday, in the wake of sterlingresults from JP Morgan and data showing inflation pressureremained in check.

Investors remained concerned over the prospects forcorporate profit growth, in light of the tepid economies in theU.S. and Europe.

JPMorgan Chase & Co

reported record quarterlyprofits, up 34 percent from a year earlier, as low interestrates and a recovering housing market boosted mortgage lending.JP Morgan shares surged in early premarket trading, but latershed advances and were down 1 percent at $41.69.

Economic data showed producer prices rose 1.1 percent inSeptember, against expectations for a 0.7 percent rise, butprices excluding volatile food and energy costs were flat,indicating underlying inflation presures remained muted.

"What we see going on is a battle - a lot of companies weremanaging down expectations because it is getting a little harderto hit those profit numbers because in a slow growth economythere is not a lot of revenue growth," said Steve Billimack,managing director at HighTower Advisors in Chicago.

"But right now on the bigger scale, inflation is undercontrol and the fact the Fed is still stimulating is really whatis driving the market more than anything."

Later in the session, investors will eye consumer sentimentdata for indications recent labor market data helped boost viewson the economy.

Wells Fargo & Co

lost 3.4 percent to $33.99 inpremarket trading after reporting its third-quarter results asrevenue fell shy of analysts' expectations.

The earnings reports of both banks will be scrutinized forinsight on the health of the financial sector and the economy asa whole. Both had been forecast to benefit significantly from ahome loan refinancing boom.

The benchmark S&P index has shed 1.9 percent so far thisweek, putting it on track for its worst weekly performance sincea 3-percent drop in the week through June 3.

Weak global demand has heightened investor worry over thecorporate earnings season. As a group, S&P 500 companies'third-quarter earnings are expected to fall 3 percent from ayear ago, according to Thomson Reuters data, marking the firstdecline in three years.

S&P 500 futures

rose 1.3 points and were above fairvalue, a formula that evaluates pricing by taking into accountinterest rates, dividends and time to expiration on thecontract. Dow Jones industrial average futures

gained 24points, and Nasdaq 100 futuresadded 4 points.Advanced Micro Devices Inc

dropped 10.9 percent to$2.85 in premarket trading after the chipmaker said itsthird-quarter revenue likely fell 10 percent from the previousquarter as a weak global economy and a growing preference fortablets slams the PC industry.

U.S.-listed shares of STMicroelectronics

jumped 6.9 percent to $6.03 in premarket trading after Bloombergreported Europe's top semiconductor maker was considering abreakup that could lead to the sale of its strugglingmobile-phone chip business.

(Editing by Bernadette Baum)

((charles.mikolajczak@thomsonreuters.com)(+1 646 2235234)(Reuters Messaging:charles.mikolajczak.thomsonreuters.com@reuters.net))

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