Palm seen off, Boeing up in slightly higher market

NEW YORK (Reuters) - Stocks were set to open slightly higher on Friday with a barren economic calendar providing few catalysts, as BOEING (BA.NY)was expected to rise after the planemaker said it will accelerate some production.

Shares of Boeing Co rose 2 percent to $72.30 in premarket action after it said it will move up production for both its 777 and 747 airliners to meet demand.

Palm Inc's stock fell 18 percent to $4.63 in premarket trading a day after it warned that quarterly revenues would be far below expectations, as tepid demand for its smartphones left wireless carriers with piles of inventory.

Bank shares may entice investors after bailed-out British lender Lloyds Banking Group Plc said it would return to profitability in 2010. Lloyds shares rose 10 percent to $3.74 in N.Y. trading and was up more than 10 percent in London.

The European Union's monetary affairs chief urged the bloc's leaders to agree on a standby aid package for Greece next week, but investors fear German reluctance could hinder the effort.

Health-sector stocks will also be in focus as a defining Congressional vote on an overhaul of the healthcare system looms.

"It's going to be interesting to see how sentiment evolves during the day regarding the healthcare reform, particularly in the health insurers," said Craig Peckham, equity trading strategist at Jefferies & Co in New York.

He said the behavior of the U.S. dollar in response to developments in Greece could bring volatility to the market, but he expects a "relatively quiet start."

S&P 500 futures rose 1.4 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 17 points, and Nasdaq 100 futures added 4.5 points.

Viacom Inc accused Google Inc of turning a blind eye to illegal video clips on its YouTube site in a bid to attract viewers, according to court documents.

Separately, Google may make an announcement next Monday about whether it will pull out from China, the China Business News reported, quoting a source.

Google shares edged down 0.6 percent to $563 in premarket trading and Baidu Inc , its largest Chinese competitor, rose 2.2 percent to $576.87.

Oil fell below $82 a barrel, extending Thursday's losses, as the U.S. dollar held onto gains against the euro amid worries over Greece's debt woes, and a rise in OPEC exports loomed.

Volume has been thin during the week and volatility has dropped considerably, with the CBOE Volatility Index <.VIX>

down 5.5 percent so far this week and falling to its lowest since May 2008.

Friday marks the second day of a convergence known as quadruple witching, when four types of options and futures contracts expire, possibly triggering volatility and higher volumes.

The Dow industrials rose for an eighth consecutive session Thursday, led by a rise in Boeing Co's stock, while mixed economic data kept the broader S&P 500 in check.

(Editing by Jeffrey Benkoe)

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