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US STOCKS-Wall St to open flat after Dow, S&P 500 records

Tue, 11th Nov 2014 14:00

* D.R. Horton falls in premarket after earnings

* Veteran's Day holiday may curb volume

* Futures up: Dow 12 pts, S&P 2 pts, Nasdaq 5.75 pts (Adds quote, updates prices)

By Chuck Mikolajczak

NEW YORK, Nov 11 (Reuters) - U.S. stocks were poised for aflat open on Tuesday, after the Dow and S&P 500 extended theirstreak of record closes for a fourth day.

Transportation and healthcare stocks helped boost the S&P500 on Monday to its 39th new closing high for the year,versus 45 in 2013. The last time the index set a record high infour consecutive days was in June, while the last five-daystreak was in May 2013.

The benchmark index has rallied 9.4 percent since hitting asix-month low in October, buoyed by supportive economic data andsolid corporate earnings reports. For the year, the index is up10.3 percent.

"It's been grinding higher, a pretty impressive rally offthe bottom," said Andre Bakhos, managing director at JanlynCapital LLC in Bernardsville, New Jersey.

"We have equity demand driven by the perception of improvingeconomics and companies' earnings prospects."

Thomson Reuters data through Monday morning showed that of448 companies in the S&P 500 to report earnings, 74.6 percentbeat expectations, above the 63 percent beat rate since 1994 and67 percent for the past four quarters. Earnings overall areexpected to grow 10 percent over the year-ago period.

S&P 500 e-mini futures were up 2 points and fairvalue, a formula that evaluates pricing by taking into accountinterest rates, dividends and time to expiration on thecontract, indicated a flat open. Dow Jones industrial averagee-mini futures rose 12 points and Nasdaq 100 e-minifutures added 5.75 points.

D.R. Horton, the largest U.S. homebuilder, fell 1percent to $23.20 before the opening bell after it reportedbetter-than-expected quarterly revenue but earnings missed WallStreet expectations.

There is no major U.S. economic data on the calendar forTuesday due to the U.S. Veteran's Day holiday, which may alsodampen volume.

U.S.-listed shares of Vodafone jumped 6.4 percent to$35.13, after the world's second-biggest mobile operator raisedit full-year earnings outlook.

Alibaba Group Holding Ltd's finance services arm"will definitely go public," Executive Chairman Jack Ma said onTuesday, eyeing a mainland China listing for the e-commercecompany's crown jewel. Its shares lost 1.7 percent to $117.13 inpremarket.

Zynga shares jumped 5.7 percent to $2.62 before theopening bell, after Jefferies raised its rating on the stock to"buy" from "hold" with a $4.50 price target.

(Reporting by Chuck Mikolajczak; Editing by Alden Bentley andNick Zieminski)

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