US STOCKS-Wall Street set for muted open after strong comeback

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* Eli Lily drops after 'mixed' data from mid-stage trial
* Southwest, JetBlue signal recovery in leisure bookings
* Futures: Dow up 0.1%, S&P down 0.1%, Nasdaq dips 0.1%

(Adds comment, details; updates prices)
By Shashank Nayar and Medha Singh
March 15 (Reuters) - Wall Street's main indexes were set for
a muted open on Monday after logging their best week in six, as
investors geared up for the Federal Reserve's meeting this week
amid caution over rising borrowing costs spurred by massive
fiscal stimulus.
Southwest Airlines Co LUV.N and JetBlue Airways Corp
JBLU.O rose 1.6% and 3% in premarket trading as the carriers
pointed to a steady rise in leisure bookings amid signs of a
slowing pandemic. Other travel-related stocks Carnival Corp CCL.N , United
Airlines Holdings UAL.O and MGM Resorts MGM.N gained between
1.4% and 3%.
The S&P 500 notched a record high for the first time in
nearly a month last week as approval of one of the largest
fiscal stimulus packages in U.S. history and vaccine rollouts
fueled demand for economy-linked stocks such as banks, energy,
materials at the cost of tech names with lofty valuations.
The major U.S. stock indexes were roiled in recent weeks as
a spike in longer-dated U.S. bond yields due to fears of an
increase in inflation and, in response, a tapering of the Fed's
easy monetary policy worried investors.
"The U.S. economy looks in a better shape than most other
developed economies," said Hussein Sayed, chief market
strategist at FXTM.
"Despite the rosier economic outlook, this week's Fed
meeting is expected to be absent of major policy changes."
At the end of Fed's two-day meeting on Wednesday,
policymakers are expected to forecast that the U.S. economy will
grow in 2021 at the fastest rate in decades while reiterating
their dovish stance for the foreseeable future. The yields on benchmark 10-year Treasuries US10YT=RR
hovered near their 13-month high at 1.61%, slightly lower than
its peak of 1.64% hit on Friday.
At 8:48 a.m. ET, Dow E-minis 1YMcv1 were up 43 points, or
0.13%, S&P 500 E-minis EScv1 were down 4.5 points, or 0.11%
and Nasdaq 100 E-minis NQcv1 were down 13.75 points, or 0.1%.
Facebook Inc FB.O , Tesla Inc TSLA.O , Amazon.com Inc
AMZN.O , Netflix Inc NFLX.O and Microsoft MSFT.O fell
between 0.1% and 0.6%.
Tesla added "Technoking of Tesla" to billionaire Chief
Executive Elon Musk's list of official titles on Monday in a
formal regulatory filing that also named finance chief Zachary
Kirkhorn "Master of Coin". Eli Lilly and Co shares LLY.N dropped 6.4% after "mixed"
results from the drugmaker's mid-stage trial testing its
experimental drug to treat Alzheimer's cast a doubt on the
chances for the drug's accelerated approval, according to
analysts.