* Futures up: Dow 0.02%, S&P 500 0.3%, Nasdaq 0.7%

* BlackRock ( BLK ), Morgan Stanley ( MS ) gain after Q2 profit beat

* PayPal ( PYPL ) soars after report of buyout offer

(Updates before market open)

By Ragini Mathur and Avinash P

July 15 (Reuters) - Wall Street's main indexes were headed

for a higher open on Wednesday, as investors weighed

softer-than-expected producer inflation data and a flurry of

corporate earnings, while PayPal ( PYPL ) surged on reports of a $53

billion takeover offer.

Strong results from major banks for the second day in a row

helped sustain an upbeat note for the second-quarter earnings

season.

BlackRock ( BLK ) shares advanced 5.1% in premarket trading,

after the asset manager beat profit expectations, as a stock

market rally boosted the value of client assets.

Morgan Stanley ( MS ) also beat Wall Street estimates for

second-quarter profit, driven by strong mergers and acquisitions

activity. Its shares were up 0.5%.

"The large banks continue to demonstrate the strength of the

U.S. consumer and corporate balance sheets. Healthy banks are

typically a positive signal for the broader economy, and the

tone of this earnings season that is underway is a positive

one," said Charlie Anderson, senior vice president, UBS Wealth

Management.

PayPal Holdings ( PYPL ) jumped nearly 19.5% after sources

told Reuters payments company Stripe and private equity firm

Advent International have jointly offered to acquire it for

$60.50 per share - representing around a 28% premium to its

Tuesday close.

Data showed the Producer Price Index for final demand

unexpectedly fell 0.3% in June, compared with forecasts for a

flat reading, adding to signs that inflation was easing. The

report followed Tuesday's softer-than-expected consumer

inflation data, which reduced expectations for an imminent

Federal Reserve rate hike.

"With the Fed offering limited forward guidance, each

inflation reading is prompting more volatility in rate

expectations," said Charlie Ripley, portfolio manager at Allianz

Investment Management.

Traders now see about a 16% chance of a quarter-point rate

increase at the Fed's next meeting, down from nearly 41% before

the CPI report, according to CME's FedWatch tool.

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 08:56 a.m. ET, Dow E-minis were up 114 points, or

0.22%, and S&P 500 E-minis were up 21.75 points, or

0.29%. Nasdaq 100 E-minis were up 200.25 points, or

0.67%.

The earnings season is gathering pace at a crucial point for

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

closed Tuesday less than 1% below its June record closing high,

leaving the rally vulnerable to any disappointment in corporate

results.

Chip stocks were mostly higher, helping lift Nasdaq futures.

U.S.-listed shares of ASML rose 2.5% after the Dutch

semiconductor equipment maker raised its 2026 financial

forecasts, reassuring investors about the strength of AI-driven

demand.

Geopolitical tensions also remained in focus after the U.S.

said it had begun a new wave of strikes against Iran after

reimposing a naval blockade of Iranian ports, while Iran

threatened to curb more regional energy exports.

Elevance Health ( ELV ) tumbled 6.8% even after raising its

annual profit forecast, as the revision fell short of investors'

lofty expectations.

(Reporting by Ragini Mathur and Avinash P in Bengaluru; Editing

by Joyjeet Das)