* Netflix jumps after content deal with DreamWorks
* Smithfield up after shareholder urges break-up
* Terex shares tumble after guidance update
* Futures up: Dow 112 pts, S&P 12 pts, Nasdaq 27 pts
NEW YORK, June 17 (Reuters) - U.S. stocks were set to rise at the open on Monday after major indexes on Friday closed their third negative week in four, with traders focused on expectations the Federal Reserve will reinforce its commitment to supporting the economic recovery.
While consensus is building among policy-makers that the time is nearing for the U.S. central bank to scale down its quantitative easing, or $85 billion-a-month bond-buying program, divisions remain over when it will start tapering its bond buying.
Chairman Ben Bernanke said on May 22 during Congressional testimony that the Fed could reduce the pace of QE in the "next few meetings," sparking a global bond and stock selloff.
"There's hopes we'll get clarity from the Fed this week," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
"The market is beginning to adjust itself to an eventual trimming from the Fed toward the beginning of next year," he said. "I think we're headed for more volatility but the market stays range-bound."
Volatility in U.S. equities has spiked, with the average daily range in the Dow industrials near 191 points since Bernanke's testimony in May. The average for 2013 before that was just below 110 points.
S&P 500 futures rose 12 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 112 points, and Nasdaq 100 futures added 27 points.
Netflix Inc shares jumped 5.1 percent in premarket trading after it signed a multi-year deal for original content with DreamWorks Animation.
Terex Corp tumbled 12.2 percent premarket after the manufacturer of machinery products updated its earnings guidance.
Shares of Smithfield Foods rose 1.4 percent in premarket trading after large shareholder Starboard urged the company to break up instead of going forward with a proposed merger with China's Shuanghui International.
Advanced Micro Devices Inc rose 5.1 percent premarket after Barron's said prospects are looking better for the No. 2 maker of microprocessors for personal computers.
Growth in the New York state manufacturing sector picked back up in June, but the details were less encouraging as new orders contracted further and measures of employment weakened, a report from the New York Federal Reserve showed on Monday. Futures held on to their previous gains after the data.
The National Association of Home Builders/Wells Fargo issues its June housing market index at 10 a.m. EDT (1400 GMT). Economists expect a reading of 45, versus 44 in May.