US STOCKS-Wall Street set to tick higher as stimulus hopes grow

(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window)
* Twitter gains on J.P. Morgan upgrade
* Airline stocks fall after Southwest flags Q4 pain
* Futures up: Dow 0.2%, S&P 0.2%, Nasdaq 0.1%

(Adds comment, updates prices)
By Ambar Warrick and Shreyashi Sanyal
Dec 16 (Reuters) - Wall Street was set to extend gains on
Wednesday tracking further progress toward a bumper coronavirus
stimulus package, while markets hoped for an affirmation of
continued easy monetary policy from the Fed's last meeting for
the year.
U.S. congressional leaders reported substantial progress
toward a spending bill late on Tuesday, bolstering hopes of
increased liquidity to offset the COVID-19 pandemic's economic
impact. The Federal Reserve is also expected to keep lending rates
at near-zero and signal their staying there for the foreseeable
future at the conclusion of their meeting later in the day.
Markets are anticipating an update on the Fed's bond-buying
program.
The mix of low interest rates and increased liquidity has
brightened the outlook for equities, with markets having moved
in tandem with any progress toward fresh stimulus in recent
weeks.
"They might not have reached a deal yet, but are definitely
headed in the right direction and some sort of a deal will soon
be announced," said Peter Cardillo, chief market economist at
Spartan Capital Securities in New York.
"The market is going to be looking at the (Fed's)
bond-buying program. So while we get an overall dovish
communiqué, the key focus will be if the Fed is going to
indicate any pullback in using its tools."
U.S. S&P 500 E-minis EScv1 were up 9 points, or 0.24%, at
08:04 a.m. ET. Dow E-minis 1YMcv1 were up 67 points, or 0.21%,
while Nasdaq 100 E-minis NQcv1 were up 17 points, or 0.14%.
Technology shares pushed Wall Street higher on Tuesday, with
the Nasdaq ending at a record high, with investors viewing the
sector as more resilient to the pandemic.
Airline stocks retreated in premarket trade after Southwest
Airlines Co LUV.N flagged a higher cash burn in the fourth
quarter, as well as increased trip cancellations in December.
Southwest's shares fell 0.8%. Data showed U.S. retail sales fell 1.1% in November,
declining for a second straight month, likely weighed down by
raging new COVID-19 infections and decreasing household income.
Twitter Inc TWTR.N rose 3.4% after J.P. Morgan upgraded
its stock to "overweight", as the brokerage expects the social
media company to stage a significant rebound in online
advertising following a pandemic-fueled decline. Shares of marijuana producers Aphria Inc APHA.TO APHA.O
and rival Tilray Inc TLRY.O jumped 6% and 29%, respectively,
after the two companies agreed to combine their operations and
create the largest cannabis producer by sales.