Wall Street set for higher open on solid results, data

NEW YORK (Reuters) - Wall Street was set for a higher open on Tuesday as corporate earnings and a solid jump in manufacturing data fueled investors' optimism on their return from a 3-day holiday.

Barclays Plc , the second-largest bank in Britain by market value, said it had started the year well after beating forecasts with 2009 profit of $18.2 billion, adding it had reined in payouts for staff after a public backlash over banker pay. U.S.-traded shares of the bank gained 11.2 percent to $18.55 in premarket trading.

A gauge of manufacturing in New York state rose to in February as inventories jumped, the New York Federal Reserve said in a report, easily beating forecast.

"It was pleasantly above expectations. It was another anecdote of an improvement in economic conditions in the U.S. and it will be what continues to make investors place bids on the market," said Chad Morganlander, portfolio manager, Stifel Nicolaus & Co in Florham in Ner Jersey.

But the global fears about risk in continues to linger in the market, particularly due to Greece, said Craig Peckham, equity trading strategist at Jefferies & Co in New York.

Earlier, Eurogroup chairman Jean-Claude Juncker said Greece must step up efforts to cut its budget deficit and understand that other euro zone citizens are not prepared to pay for its government's mistakes.

Kraft Foods Inc posted a higher quarterly profit and said its recent acquisition of British chocolatier Cadbury Plc would help accelerate long-term growth. But the stock slipped 1.9 percent to $28.55 before the bell.

Drugmaker Merck & Co posted quarterly profit in line with analysts' estimates and stuck by its goals for massive savings from its recently completed merger with rival drugmaker Schering-Plough Corp. The stock rose 1.8 percent to $37.60 in premarket trade.

S&P 500 futures gained 5.6 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 rose 38 points and Nasdaq 100 futures were up 6.5 points.

Abercrombie & Fitch Co posted a lower quarterly net profit as the clothing retailer grappled with a prolonged sales slump in the United States. The stock rose 2.1 percent to $34.55.

If President Barack Obama's plan to ban proprietary trading at some banks was applied in the European Union, it could be problematic for the bloc's universal banks, an EU document obtained by Reuters said. The plan, dubbed the "Volcker rule," was drafted by White House adviser and former Federal Reserve Chairman Paul Volcker, stunned global markets last month and is already facing resistance in Congress.

U.S. crude oil futures were up $1.85, or 2.51 percent, at $75.99 a barrel, spurred by gains in the euro against the dollar.

The Dow and S&P 500 dipped on Friday as China's move to curb bank lending and U.S. and European economic data raised fears the global recovery might be in jeopardy.

(Editing by Theodore d'Afflisio)

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