US STOCKS-Wall St set to open flat as Fed policy meeting looms

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* Fed policy meeting to start on Tuesday
* Mylan to combine with Pfizer's off-patent medicines unit
* Starbucks eases on J.P.Morgan downgrade
* Futures up: Dow 0.05%, S&P 500 0.02%, Nasdaq 0.07%

(Updates prices, adds background, comments)
By Shreyashi Sanyal
July 29 (Reuters) - U.S. stocks were set to open just off
record highs on Monday, pausing at the start of a week likely to
be dominated by Wednesday's statement by the Federal Reserve and
a round of tech company earnings that will again test the impact
of trade concerns on global growth.
The S&P 500 and Nasdaq indexes closed at record highs on
Friday, as upbeat earnings from Google-parent Alphabet GOOGL.O
and Starbucks Corp SBUX.O capped a strong week for U.S.
retailers and tech companies.
While Refinitiv data shows 75% of the 218 S&P 500 companies
that have reported earnings so far have topped profit estimates,
data on the U.S. economy went in the opposite direction,
supporting action by the Fed on Wednesday.
A quarter point cut to bolster the amount of capital
coursing through financial markets and support borrowing by
ordinary Americans is fully priced in for Wednesday and it will
be policymakers' comments on what next that should define
whether a rally since May continues.
"The key question facing investors now is whether the Fed
can get away with a small number of insurance cuts or whether it
will be pushed towards a more fundamental loosening of policy,"
Neil Shearing, group chief economist at Capital Economics, said
in a note.
Among other stocks, Mylan NV MYL.O jumped 12.8% premarket
as it confirmed reports over the weekend that it was combining
with Pfizer Inc's PFE.N off-patent branded and generic
established medicines business to form a new global player.
Pfizer fell 3.7% after the drugmaker slashed its full-year
profit and revenue forecast in an unexpected release of its
quarterly results to go with the deal announcement.
Starbucks slipped 1% from Friday's record highs after
J.P.Morgan downgraded the coffee chain's stock to "neutral"
saying its valuation has become "beyond stretched".
Hopes that the Fed would take a more dovish approach to
counter the impact of a protracted U.S.-China trade war has
helped Wall Street's main indexes scale record levels this
month.
But the market's recovery from a torrid month of trading in
May have also been dependent on other indicators like earnings
not being so robust as to make the Fed hold fire.
Rick Meckler, partner at Cherry Lane Investments in New
Vernon, New Jersey, said, markets will see a 25 bps cut as a
happy medium, an indication that things aren't that bad.
Some 33% of S&P companies will be reporting this week, led
by Apple Inc AAPL.O after hours on Tuesday.
At 8:46 a.m. ET, Dow e-minis 1YMcv1 were up 13 points, or
0.05%. S&P 500 e-minis EScv1 were up 0.75 points, or 0.02% and
Nasdaq 100 e-minis NQcv1 were up 5.5 points, or 0.07%.