* Futures: Dow down 0.12%, S&P 500 up 0.07%, Nasdaq up 0.19%

* July retail sales, August consumer sentiment survey due

* Reddit soars on S&P 500 inclusion announcement

* Drone makers gain after Trump plans tariffs on drone,

component imports

(Updates prices, adds comments)

By Avinash P and Purvi Agarwal

Aug 14 (Reuters) - U.S. stock index futures were largely

subdued on Friday, a day after the S&P 500 closed at a

record high, as rising crude prices following the latest

developments in the Middle East kept investors cautious.

Tame producer and consumer inflation readings this week

eased worries of a September rate hike by the U.S. Federal

Reserve, boosting the benchmark index and setting it and the

Nasdaq up for a third consecutive weekly advance.

However, tensions in the Middle East persisted, with transit

through the Strait of Hormuz appearing to grind to a near

standstill after two more ships were attacked there and the

United States said it ​could maintain a naval blockade of Iran

indefinitely.

Brent crude futures gained 1% on Friday.

Investors may be becoming desensitized to geopolitical

shocks, but central banks cannot yet dismiss the latest

developments, said Elwin de Groot, Rabobank's head of macro

strategy.

"This week's U.S. inflation report, while broadly on the

mark, is unlikely to settle the debate within central banks," he

added.

With energy prices remaining elevated and Fed Chair Kevin

Warsh offering little guidance on the central bank's next move,

investors are scrutinizing economic data more closely.

Investors will also parse July retail sales data and a

preliminary University of Michigan consumer sentiment reading

later in the day.

At 7:41 a.m. ET, Dow E-minis were down 65 points, or

0.12%, S&P 500 E-minis were up 5.75 points, or 0.07%,

and Nasdaq 100 E-minis were up 57.25 points, or 0.19%.

In premarket movers, Applied Materials ( AMAT ) fell 5.6%,

even after the chip equipment maker forecast fourth-quarter

revenue above Wall Street estimates. The stock has more than

doubled so far this year.

Investors have sold AI-linked stocks at the first sign of

slowing growth, even when companies reported strong results and

upbeat forecasts, while rewarding those whose AI investments

have produced clear returns.

Reddit jumped over 10% after the social media company

was selected to join the S&P 500 index, effective August 18.

Fox Corp's ( FOXA ) Class A shares gained 2% after J.P.

Morgan upgraded the media company to "overweight" from

"neutral."

Shares of some drone makers gained after President Donald

Trump said late on Thursday that he would impose tariffs on

imports of drones and their components.

Red Cat ( RCAT ) jumped 7.5%, Unusual Machines ( UMAC )

added 14% and AeroVironment ( AVAV ) gained 3.9%.

Chicago Fed President Austan Goolsbeesaid late on Thursday

the latest U.S. inflation data has been "a little better," and

that he was hopeful inflation could continue to improve.

Comments from Atlanta Fed interim President Cheryl Venable

will also be closely watched later in the day.