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* Futures up: Dow 0.2%, S&P 500 0.2%, Nasdaq 0.5%

July 15 (Reuters) - U.S. stock index futures edged higher as

investors braced for a fresh wave of corporate earnings as well

as producer inflation data due later Wednesday, while PayPal ( PYPL )

shares surged after reports of a $53 billion takeover offer.

Major U.S. banks kicked off the second-quarter reports

season on Tuesday with stronger-than-expected results, buoyed by

trading strength and a rebound in dealmaking.

BlackRock ( BLK ) reported a jump in second-quarter profit

on Wednesday, as a stock market rally boosted the value of

client assets. Its shares were 1.9% higher premarket in low

volumes.

Investors are now awaiting numbers from Morgan Stanley ( MS )

for further clues on the health of financial firms and

capital markets activity. Its shares were up 0.6%.

Meanwhile, PayPal Holdings ( PYPL ) jumped 18.5% in

premarket trading after sources said payments company Stripe and

private equity firm Advent International have jointly offered to

acquire it for $60.50 per share, valuing PayPal ( PYPL ) at more than $53

billion.

The earnings season is gathering pace at a crucial point for

equities. The S&P 500 has climbed more than 10% this year and,

as of Tuesday's close, stood less than 1% below its record

closing high from early June, leaving the rally vulnerable to

any disappointment in corporate results.

Investors were also looking ahead to the Producer Price

Index (PPI) report for more evidence on inflation trends, after

a softer-than-expected Consumer Price Index (CPI) reading on

Tuesday eased concerns about an imminent Federal Reserve rate

hike.

Markets are currently pricing in about a 17% chance of a

quarter-point rate increase at the Fed's next policy meeting,

according to CME's FedWatch tool. The odds for the same were

about 41% before the CPI data.

Wednesday also marks the second day of Federal Reserve Chair

Kevin Warsh's testimony before Congress. Warsh told lawmakers on

Tuesday that one data point was not enough to declare victory

over inflation.

At 06:09 a.m. ET, Dow E-minis were up 108 points, or

0.2%, and S&P 500 E-minis were up 13.5 points, or 0.18%.

Nasdaq 100 E-minis were up 136.75 points, or 0.46%.

Chip stocks were mostly higher, helping lift Nasdaq futures.

U.S.-listed shares of ASML rose 3.8% after the Dutch

semiconductor equipment maker raised its 2026 financial

forecasts, reassuring investors about the strength of AI-driven

demand.

On the geopolitical front, Iran's Islamic Revolutionary

Guard Corps threatened to close "all other export corridors that

benefit the U.S. and its allies," Iranian media reported, after

Iran shut the Strait of Hormuz and the U.S. reimposed a naval

blockade of Iranian ports.

(Reporting by Ragini Mathur in Bengaluru; Editing by Joyjeet

Das)