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Futures up: Dow 0.03%, S&P 500 0.07%, Nasdaq 0.09%

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FedEx ( FDX ) results top targets on cost-cutting, shares jump

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Lennar ( LEN ) falls after quarterly profit declines

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Trump-Xi scheduled call on radar

(Updates before markets open)

By Purvi Agarwal and Sukriti Gupta

Sept 19 (Reuters) -

Wall Street's main indexes looked set for a subdued open on

Friday after they rallied to record highs in the previous

session, while FedEx ( FDX ) rose as the parcel delivery firm posted

upbeat quarterly results.

FedEx ( FDX ) gained 3.5% before the bell after reporting

quarterly profit and revenue above Wall Street estimates on

Thursday, as cost-cutting and strength in domestic deliveries

helped offset weaker international volumes.

Peer United Parcel Service ( UPS ), which abandoned its bid

for Mexican parcel company Estafeta, also gained 1.3%.

Wall Street's three main indexes closed at all-time highs on

Thursday, partly boosted by chipmaker Intel ( INTC ) after AI

leader Nvidia ( NVDA ) decided to build a $5 billion stake in

the company. Intel ( INTC ) was flat in premarket trading on Friday.

Federal Reserve Chair Jerome Powell's emphasis on the

weakening labor market and indications of further monetary

policy easing also buoyed investor sentiment.

"The Fed's pivot toward rate cuts, even against a backdrop

of sticky inflation, has markets betting on a softer landing

rather than a policy misstep," said Matt Britzman, senior equity

analyst at Hargreaves Lansdown.

The small-cap Russell 2000 index closed at an

all-time high on Thursday, its first since November 2021, on

optimism that additional interest-rate cuts could improve the

outlook for these smaller companies.

Futures tied to the index were little changed on

Friday.

At 7:37 a.m. ET, Dow E-minis were up 12 points, or

0.03%, S&P 500 E-minis were up 5 points, or 0.07% and

Nasdaq 100 E-minis were up 23 points, or 0.09%.

The three indexes were set for weekly gains, wrapping up the

week with the Fed's first rate cut of 2025 and reviving optimism

around AI-linked stock trading.

Markets will focus on a scheduled call between U.S.

President Donald Trump and Chinese counterpart Xi Jinping to

discuss TikTok.

"The call between Trump and Xi is the most obvious near-term

catalyst, which could shape not just the fate of TikTok but the

tone of broader trade talks," said Britzman.

Analysts expect some volatility from "triple witching",

where options and futures linked to stock indexes and individual

stocks are set to expire on the third Friday of the last month

of the quarter.

Wall Street's three main indexes are in positive territory

so far in September - a month deemed historically bad for U.S.

equities. The benchmark S&P 500 has shed 1.4% on average in the

month since 2000, according to data compiled by LSEG.

Comments from San Francisco Fed President Mary Daly will be

parsed in the first media interaction after the Fed's Wednesday

meeting.

In other stocks, Lennar ( LEN ) fell 2.7% after the

homebuilder reported a lower third-quarter profit and forecast

fourth-quarter home deliveries below estimates.