US STOCKS-Wall St set to open lower as banks fall, virus cases surge

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* Futures: Dow down 0.56%, S&P down 0.20%, Nasdaq flat

(Adds comment, details; updates prices)
By Medha Singh and Devik Jain
June 26 (Reuters) - Wall Street was set to open slightly
lower on Friday as bank stocks fell following the Federal
Reserve's move to cap shareholder payouts and the United States
set a new record for a one-day increase in coronavirus cases.
U.S. lenders Bank of America Corp BAC.N , JPMorgan Chase &
Co JPM.N , Goldman Sachs GS.N fell between 1.8% and 4% after
the Fed limited dividend payments and barred share repurchases
until at least the fourth quarter following its annual stress
test. In the previous session, banks stocks had powered Wall
Street's main indexes higher, helping them offset investor fears
due to rising virus infections in several U.S. states.
The uptick in cases has also threatened to derail a strong
rally for Wall Street that brought the S&P 500 within 9% of its
February all-time high on the back of record government stimulus
measures. "There's a fight in the market between folks who believe
that the economic resurgence is unstoppable and those who
believe that there is more trouble ahead," said Christopher
Grisanti, chief equity strategist at MAI Capital Management in
Cleveland, Ohio.
"It's more probable that the scenario is not as rosy as the
market thinks."
At 8:35 a.m. ET, Dow e-minis 1YMcv1 were down 144 points,
or 0.56%. S&P 500 e-minis EScv1 were down 6 points, or 0.2%
and Nasdaq 100 e-minis NQcv1 were up 0.25 points, or flat.
Nike slipped 3.6%, the most among the 27 of 30 blue-chip Dow
Jones Industrials .DJI constituents trading before the bell,
as the footwear maker posted its first loss in more than two
years hurt by store closures. Facebook Inc FB.O fell 1.1% after Verizon Communications
Inc VZ.N joined an advertising boycott that called out the
social media giant for not doing enough to stop hate speech on
its platforms.
A U.S. Commerce Department report showed personal income
dropped 4.2% in May after surging 10.5% in April. Separately, a
reading of core personal consumption expenditures price index
edged up 0.1% last month after easing 0.4% in April.
Friday also marks the reconstitution of the FTSE Russell
indexes, including large cap Russell 1000 .RUI and small cap
Russell 2000 .RUT , that often marks one of the biggest trading
volume days of the year.