(For a Reuters live blog on U.S., UK and European stock

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Bank of America ( BAC ) up after higher Q4 profit

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UnitedHealth ( UNH ) falls on missing quarterly sales estimates

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Dec. retail sales, weekly jobless claims data on tap

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Futures: Dow down 0.20%, S&P 500 up 0.30%, Nasdaq up 0.50%

(Updates with results from Bank of America ( BAC ), UnitedHealth ( UNH ),

Target ( TGT ))

By Johann M Cherian and Sukriti Gupta

Jan 16 (Reuters) -

S&P 500 and Nasdaq futures inched higher on Thursday, aided

by strong quarterly results from Bank of America ( BAC ), while

investors awaited economic data that could offer insights into

the health of the world's largest economy.

At 6:52 a.m. ET, Dow E-minis were down 89

points, or 0.20%, S&P 500 E-minis were up 17.75 points,

or 0.30% and Nasdaq 100 E-minis were up 106.25 points,

or 0.50%.

Bank of America ( BAC ) rose 2.3% in premarket trading

after the country's second-largest bank's

profit rose

as its investment bankers capitalized on resurgence in

dealmaking in the fourth quarter and interest income rose.

Morgan Stanley ( MS ) added 2% ahead of its quarterly

results.

In the previous session, Wall Street's main indexes

logged their biggest one-day jump since Nov. 6 after data

indicated that underlying inflation was subsiding and three of

the country's biggest banks reported bumper results.

The S&P 500 banks index and the regional banks

index have outperformed Wall Street's top indexes so far

in January, as investors anticipate a favorable business

environment for the sector under President-elect Donald Trump.

The sentiment was reiterated by bank CEOs on Wednesday.

Of the 28 companies in the S&P 500 that have reported

fourth-quarter earnings as of Wednesday, 82.1% have surpassed

estimates, according to data compiled by LSEG.

On the data front, retail sales data for the month of

December is due at 8:30 a.m. ET. Economists polled by Reuters

expect a 0.6% increase, compared with a 0.7% rise in the

previous month. A weekly report on jobless claims is also

expected later in the day.

Following Wednesday's inflation report, the yield on the

benchmark 10-year Treasury note has eased from its

14-month high and was last at 4.66%.

Traders now see the Federal Reserve cutting interest rates

by 25 basis points in July, according to data compiled by LSEG.

They had all but priced out any reductions for 2025 earlier in

the week.

"The deceleration in yesterday's core (inflation) figures

should quiet the tut-tutting of armchair central bankers who had

criticized the Fed's December rate cut," said Peter Graf, chief

investment officer at Nikko Asset Management Americas.

"With both inflation and employment trending sideways for

the time being, market expectations can coalesce around a hold

in interest rates, and investors can turn their focus to

upcoming earnings and policy announcements."

On Capitol Hill, Senate confirmation hearings are underway

for Trump's Cabinet picks and Treasury secretary nominee Scott

Bessent will face questions at 10:30 a.m. ET.

Markets will scrutinize his plans to implement the

president-elect's proposals on tariffs, tax-cuts and

deregulation, at a time when the U.S. national debt stands over

100% of national output.

Dow component UnitedHealth ( UNH ) dropped 4.7% after the

insurer reported fourth-quarter revenue below estimates.

U.S.-listed shares of Taiwan Semiconductor Manufacturing Co

rose 5.2% after the company posted a record quarterly

profit on surging demand for chips used in artificial

intelligence processing.

Other chip stocks Nvidia ( NVDA ) rose 1.9% and Broadcom ( AVGO )

added 2%.

Target ( TGT ) rose 2.5% after raising its holiday-quarter

comparable sales forecast, buoyed by robust shopper demand for

clothing, toys and beauty products in November and December.