US STOCKS-Wall St set to extend recovery at the end of volatile week

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* Disney shares drop as subscriber additions disappoint
* General Mills slips on $1.2 bln deal to buy pet treats
unit
* Airbnb dips after quarterly results
* Futures up: Dow 0.30%, S&P 0.49%, Nasdaq 0.87%

(Adds comment, details; updates prices)
By Medha Singh and Sruthi Shankar
May 14 (Reuters) - Wall Street's main indexes were set to
open higher at the end of a volatile week marred by worries
about rising inflation and a subsequent tightening of monetary
policy.
Futures briefly pared gains after data showed U.S. retail
sales unexpectedly stalled in April, as the boost from stimulus
checks faded. Industrial production and consumer sentiment data
will also be released later in the day. The Dow and the S&P 500 are set for their steepest weekly
drop since January after stronger-than-expected inflation data,
signs of labor shortage and higher commodity prices this week
raised bets the Federal Reserve would have to pare back its
crisis level support.
The three main U.S. stock indexes snapped a three-day losing
streak on Thursday after better-than-expected weekly jobless
claims data.
"The belief is that inflation will become more persistent,
and it leaves the Fed behind the curve," said Rob Sechan,
co-founder of NewEdge Wealth in New York.
"As we get more broad-based in terms of the reopening, there
is going to be more consensus around what is today's
uncertainties, and market reaction will become more predictable
and less volatile."
In signs that life was returning to normal, revised guidance
from the U.S. Centers for Disease Control and Prevention said
fully vaccinated people do not need to wear masks outdoors and
can avoid wearing them indoors in most places. At 8:42 a.m. ET, Dow e-minis 1YMcv1 were up 101 points, or
0.3%, S&P 500 e-minis EScv1 were up 20.25 points, or 0.49% and
Nasdaq 100 e-minis NQcv1 were up 113.5 points, or 0.87%.
Large-cap growth stocks, that were beaten down this week on
concerns over their lofty valuations, led gains in early trading
with Apple Inc AAPL.O , Amazon.com Inc AMZN.O and Microsoft
Corp MSFT.O gaining about 1% each and Tesla Inc TSLA.O
adding 2.4%.
Disappointing subscriber additions for Walt Disney Co's
DIS.N namesake streaming service overshadowed
better-than-expected overall profits, driving down shares of the
entertainment company by 4.2%. Airbnb Inc ABNB.O fell 0.9% despite beating analysts'
expectations for first-quarter gross bookings and revenue.
General Mills Inc GIS.N slipped on a deal to buy Tyson
Foods Inc's TSN.N pet treats business for $1.2 billion in
cash, as the cereal maker builds its pet food portfolio.
Tyson shares added 0.5%.