US STOCKS-Futures flat, Dow and S&P 500 at record levels

Reuters - UK Focus

* Dow and S&P 500 coming off record closing highs

* AT&T (NYSE: T - news) in talks to buy DirecTV (Frankfurt: DIG1.F - news) : sources

* April retail sales data on tap, seen rising 0.4 pct

* Futures up: Dow 20 pts, S&P 2.9 pts, Nasdaq 3.75 pts

By Ryan Vlastelica

NEW YORK (Frankfurt: HX6.F - news) , May 13 (Reuters) - U.S. stock index futures werelittle changed on Tuesday as investors found few reasons to keeppushing shares higher following a sharp rally in the previoussession that took the Dow and S&P 500 to record closes.

* Gains this year have come on improving signs of domesticgrowth, though traders continue to worry about the pace ofeconomic expansion as well as tensions between Ukraine andRussia, which many fear could escalate into further violence.

* Insight into the state of the economy will come at 8:30a.m. EDT (1230 GMT), when April data on both retail sales andimport and export prices will be released. Sales are seen rising0.4 percent in the month, which represents a deceleration fromMarch, while import and export prices are both seen up 0.3percent.

* Market participants are also watching merger activity.Late Monday, sources told Reuters that AT&T Inc was inactive talks to buy DirecTV, and that it may complete adeal in the next few weeks that could be worth close to $50billion. Shares of DirecTV rose 4.9 percent to $91.44 inpremarket trading.

* Separately, Pfizer (NYSE: PFE - news) suggested it could raise itsproposed $106 billion offer if AstraZeneca (NYSE: AZN - news) engaged intalks, as its boss was grilled by UK lawmakers on his commitmentto British research spending and jobs. U.S. shares of Astra rose 0.7 percent to $78.39 before the bell.

* S&P 500 futures rose 2.9 points and were above fairvalue, a formula that evaluates pricing by taking into accountinterest rates, dividends and time to expiration on thecontract. Dow Jones industrial average futures added 20points and Nasdaq 100 futures rose 3.75 points.

* Wall Street rallied on Monday, with the S&P climbing 1percent and the Nasdaq adding nearly 2 percent on the back ofoutperformance in the Internet and biotech space. The Russell2000 index of small-cap stocks climbed 2.4 percent, itsbiggest daily percentage gain since early March.

* Russia said new European Union sanctions would hinderefforts to defuse the situation, urging the West to persuadeKiev to hold discussions on the country's future structurebefore a May 25 presidential election.

* China's economic activity showed across-the-board weaknessin April, with economic indicators on investment and consumptionmissing expectations. The data sparked new calls for Beijing toease policies to shore up growth. (Editing by Bernadette Baum)

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