US STOCKS-Futures rise as lower oil boosts optimism

* Oil extends slide, adds to bullish sentiment

* McDonald's, Boeing and AT&T in earnings spotlight

* Costco's profit warning might cause some caution

By Ellis Mnyandu

NEW YORK, July 23 (Reuters) - U.S. stock futures rose on Wednesday as investors bet that a further drop in oil prices will help sustain consumer and business spending, improving the outlook for economic growth and profits.

In addition, lower oil prices could allay concerns of the Federal Reserve about rising inflationary pressures.

U.S. front-month crude fell $2.24, or nearly 2 percent, to $126.17 a barrel on signs that Hurricane Dolly will miss major oil and gas production facilities in the Gulf of Mexico. For details, see [ID:nSP173429].

Shares of consumer-oriented companies as well as big manufacturers and airlines were likely to advance, along with technology stocks and financial companies as investors sell energy shares in favor of other sectors.

"It's all about oil," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey. "The lower oil moves, the more support it's providing to a cross section of stocks."

S&P 500 futures SPc1 rose 6.30 points and were above fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures DJc1 jumped 59 points, and Nasdaq 100 NDc1 futures gained 11 points.

Investors are on the watch for a number of earnings reports that could provide direction for the market, including plane maker Boeing Co (BA.N) and fast-food company McDonald's Corp (MCD.N), both Dow components.

But there might be caution after Costco Wholesale Corp (COST.O), the No 1 U.S. warehouse club operator, on Wednesday forecast a fourth-quarter profit below Wall Street estimates, citing energy costs and lower margins from merchandise sales at its outlets. [ID:nBNG266363]

In other earnings news, Washington Mutual Inc WM.N, the largest U.S. savings and loan, posted a $3.33 billion second-quarter loss after the bell on Tuesday as souring mortgages forced it to set aside more money for loan losses.

The thrift's deteriorating health prompted Moody's Investors Service to say it may downgrade Washington Mutual to "junk" status. Shares of Washington Mutual fell 21 cents to $5.61 in after-hours electronic trading. [ID:nN22322548]

U.S. stocks rose more than 1 percent on Tuesday as oil prices slid more than $3 a barrel. (Editing by Kenneth Barry)