June 17, 2020 / 12:19 PM / 23 days ago

US STOCKS-Wall St set to extend 3-day rally on recovery hopes

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* Norwegian Cruise Line falls on extending trip suspensions

* Oracle slips after revenue miss

* Futures up: Dow 0.68%, S&P 0.59%, Nasdaq 0.59% (Adds quote, details; Updates prices)

By Medha Singh and Devik Jain

June 17 (Reuters) - Wall Street’s main indexes were set to open higher on Wednesday, building on their three-day rally as signs of more official stimulus supported hopes of an economic recovery, even as six U.S. states saw a record rise in new coronavirus cases.

The S&P 500 wrapped up its best three-day percentage rise in a month on Tuesday after a report on a massive fiscal stimulus plan, and a stunning retail sales report for May reflected a pickup in demand as businesses reopened.

Encouraging economic data and trillions of dollars in monetary and fiscal stimulus have propelled a rally in the Wall Street indexes from their late-March trough.

The benchmark S&P 500 and the Dow now remain about 8% and 11% below their respective record closing highs hit in February, while the tech-heavy Nasdaq hovered about 1% below its all-time closing high on June 10.

“Although question marks remain as to whether such a pace of recovery is sustainable given that the pandemic is unlikely to end anytime this year, the flood of stimulus is making it difficult for investors to ditch their optimistic views,” said Raffi Boyadjian, senior investment analyst at online broker XM.

Federal Reserve Chair Jerome Powell warned on Tuesday that a full recovery is unlikely until the public is confident that the disease in under control, as he testified before U.S. lawmakers. The second day of his virtual hearing will begin at 12 p.m. ET (1400 GMT).

Six U.S. states including Arizona, Florida and Oklahoma saw a record increase in new coronavirus infections on Tuesday as states pushed ahead with reopening. Beijing extended its movement curbs as it fought the worst resurgence of the disease since early February.

At 7:55 a.m. ET, Dow e-minis were up 179 points, or 0.68%. S&P 500 e-minis were up 18.5 points, or 0.59% and Nasdaq 100 e-minis were up 59.25 points, or 0.59%.

Cruise operator Norwegian Cruise Line Holdings Ltd tumbled 7.7% in premarket trading as it extended the suspension of its voyages through September end due to the virus outbreak.

Other cruise operators Carnival Corp and Royal Caribbean Cruises Ltd also dropped about 3.5% each.

Oracle Corp fell 3% after its quarterly revenue missed estimates as the pandemic led clients in the hospitality, retail and transportation sectors to postpone purchases.

Southwest Airlines Co edged higher as the carrier said it had enough cash to carry on business for the next two years, up from its prior forecast of 20 months, as travel demand gradually picks up. (Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Shounak Dasgupta)

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