US STOCKS-Futures point to higher open on economic optimism

                                
 * Oil rises to new six-month high
                                
 * Deere shrs fall after qtrly profit drops 38 pct
                                
 * Bank of America gains after share sale
                                
 * Futures up: S&P 5.20 pts, Dow 9 pts, Nasdaq 3.25 pts
                                
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 By Leah Schnurr
                                
 NEW YORK, May 20 (Reuters) - Wall Street looked set for a
higher open on Wednesday as investors remained optimistic that
the worst of the economic slowdown was abating.
                                
 Energy shares could get a boost as U.S. crude oil futures
<CLc1> rose above $60 a barrel to touch a new six-month high
amid bullish inventory data and a spate of U.S. refinery
accidents. Exxon Mobil Corp <XOM.N> rose 0.7 percent to $71 in
premarket trading.
                                
 Shares of Deere & Co <DE.N> fell 2.8 percent to $42.60
after the world's largest maker of agricultural machinery said
quarterly earnings fell 38 percent and cut its profit forecast
again. [ID:nN20488425].
                                
 Bank of America Corp <BAC.N> raised $13.47 billion through
a sale of its shares, marking a step toward meeting government
requirements for capital-raising following the results of a
stress test on the bank. Its shares gained 5.8 percent to
$11.90. [ID:nN19416813]
                                
 While confidence over positive economic signals has fueled
a hefty run-up since early March, investors say the rally could
be capped due to the lack of some impetus on the horizon.
                                
 "The market has been flip-flopping each day and is looking
for a clear, discernible direction through some catalyst in
either direction," said Andre Bakhos, president of Princeton
Financial Group in Princeton, New Jersey.
                                
 "There's a high level of frustration mounting among
investors and traders as they try to figure out in which way we
will get a follow-through trend."
                                
 S&P 500 futures <SPc1> rose 5.20 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> climbed 9
points, and Nasdaq 100 <NDc1> futures added 3.25 points.
                                
 On the economic front, minutes from the U.S. Federal
Reserve's policy-setting meeting are expected to be released at
2:00 p.m. EDT (1800 GMT). Investors will watch for further
clues on the economy.
                                
 Also, U.S. Treasury Secretary Timothy Geithner is to
testify on the Troubled Asset Relief Program before the Senate
Banking Committee at 9:30 a.m. EDT (1330 GMT).
                                
 Hewlett-Packard Co, the world's top personal computer
maker, gave a disappointing revenue forecast for the fiscal
year and said it will cut 2 percent of its workforce as it
reported in-line quarterly profit after the bell on Tuesday.
(For details, see [ID:nN19414562]). Shares of HP <HPQ.N> were
down 3.8 percent at $35.18.
                                
 Shares of Dow component Procter & Gamble Co <PG.N> gained
1.2 percent to $53.60 after Barclays raised its rating to
"overweight" from "equal-weight."
                                
 The Dow and S&P 500 slipped Tuesday as financial shares
sank on disappointing housing data, but the Nasdaq rose as
investors snapped up technology issues ahead of results from
HP.
                                
 The S&P 500 has climbed from a 12-year closing low in early
March, rising 37.4 percent through May 8. But the benchmark
index gave up some ground last week and is now up 29.8 percent
since March 9.
 (Reporting by Leah Schnurr; editing by Jeffrey Benkoe)