US STOCKS-Futures little changed after large weekly loss
* Urban Outfitters earnings due
* U.S. 10-year yield hits fresh 2-yr high
* Futures: Dow off 1 pt, S&P down 1 pt, Nasdaq flat
By Rodrigo Campos
NEW YORK, Aug 19 (Reuters) - U.S. stocks were set to open little changed on Monday, following the Dow industrials' largest weekly drop in more than a year, as traders positioned for an expected move from the Federal Reserve to scale back its economic stimulus.
Bets that the Fed would begin to wind down its $85 billion a month asset purchases were seen in other markets, and the U.S. benchmark 10-year yield rose to a fresh two-year high of 2.875 percent.
The higher yield could further hurt dividend-paying, low-growth equity sectors like utilities and health care. Last Friday, the S&P 500 health care sector saw its largest weekly drop since November 2011.
Capital-intensive industries like large industrials and some miners, alongside utilities, could see their stocks fall out of favor if yields and interest rates continue to rise, according to Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
"Anybody with a large amount of short term debt," she said, speaking of sectors to watch for a possible selloff due to higher rates. "And if they pay a dividend, it can be at risk."
With little expected this week in the way of economic indicators, market participants are focused on the minutes of the latest Fed meeting, expected on Wednesday.
S&P 500 futures fell 1 point and were little changed in terms of 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 fell 1 point, and Nasdaq 100 futures were flat.
Saks Inc reported a deeper-than-expected second-quarter loss, pressured by mark-downs. Its shares were little changed in light premarket trading.
A federal bribery investigation into whether JPMorgan Chase & Co hired the children of key Chinese officials to help it win business is the latest in a series of legal and regulatory headaches for Chief Executive Jamie Dimon.
There are no major economic indicators due for release on Monday. Urban Outfitters is the only S&P 500 company scheduled to report results.