US STOCKS-Wall St set to rise after jobless data, Best Buy

* Initial jobless claims fall last week

* Best Buy rises nearly 7 pct after results

* EU leaders try for Greece deal before summit

* Futures up: S&P 6.9 pts, Dow 33 pts, Nasdaq 14.5 pts

* For up-to-the-minute market news, click [STXNEWS/US] (Recasts, adds details)

By Leah Schnurr

NEW YORK, March 25 (Reuters) - Wall Street was set to open higher on Thursday after data showed first-time jobless claims fell more than expected and electronics retailer Best Buy Co reported that quarterly profit and sales beat estimates.

Shares of Best Buy (BBY.N) jumped 6.7 percent to $43.95 premarket after its results beat expectations on demand for computers, flat-panel televisions and mobile phones and issued an upbeat forecast. For details, see [ID:nN24177911]

The number of U.S. workers filing new applications for unemployment insurance fell sharply last week, while continued benefits fell to the lowest point since December 2008. [ID:nN25214871]

"It's an indication that the labor market continues to improve. It's been a very slow and fitful process, but I think it's going to continue," said Ward McCarthy, chief U.S. financial economist at Jefferies & Co in New York.

"We have a recovery, but it is not robust. It is still fragile."

S&P 500 futures SPc1 rose 6.9 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 gained 33 points, and Nasdaq 100 futures NDc1 added 14.5 points.

Sovereign debt issues remained a concern ahead of an EU summit later Thursday. German Chancellor Angela Merkel backed aid for debt-laden Greece with International Monetary Fund involvement as a "last resort." Worries over heavy debt loads of some euro zone nations have weighed on stocks lately, and markets fell Wednesday after Portugal's credit rating was downgraded. [ID:nLDE62N2R1]

Lending support to stocks on Thursday, the Dubai government pledged to back the restructuring of debt-laden state-owned firm Dubai World and its property unit Nakheel with $9.5 billion in funding. [ID:nLDE62O010]

U.S. Federal Reserve Chairman Ben Bernanke will testify Thursday morning at a U.S. House Financial Services Committee hearing. Investors will watch for details on the central bank's exit strategy.

Internet auctioneer EBay Inc (EBAY.O) rose 3 percent to $27.75 after Credit Suisse boosted its rating on the stock to "outperform" from "neutral." [RCH/US]

Qualcomm Inc (QCOM.O) raised its financial guidance for the second quarter. Its shares jumped 5.1 percent to $42.25. [ID:nWNAB3585]

On the downside, Red Hat Inc (RHT.N) lost 2.6 percent to $29.89 ahead of the opening bell after the software maker forecast profit below Wall Street projections and said deferred revenue, a key indicator, would be below some estimates. [ID:nN24173095]

Troubled bond insurer Ambac Financial Group Inc ABK.N said it was open to seeking a negotiated restructuring of its debt through a prepackaged bankruptcy proceeding. Ambac shares fell 13.3 percent to 69 cents. [ID:nSGE62O061]

The U.S. Treasury could unveil a preset trading plan next month for the sale of its 27 percent stake in Citigroup Inc (C.N), Bloomberg reported. The plan would lock the government into a schedule for selling its shares. Citi rose 2.7 percent to $4.26. [ID:nSGE62O087] (Additional reporting by Emily Flitter; editing by Jeffrey Benkoe)