US STOCKS-Futures point to flat Wall St open; S&P 500 near record

Reuters - UK Focus

* Biotech stocks edge up, continuing recent rally

* Best Buy tumbles after results, DSW higher

* Digital Ally (NasdaqCM: DGLY - news) gains before bell, has tripled this month

* Futures up: Dow 24 pts, S&P 2.5 pts, Nasdaq 7.25 pts (Updates prices, adds DSW results)

By Ryan Vlastelica

NEW YORK, Aug 26 (Reuters) - U.S. stock index futurespointed to very slight gains at the open on Tuesday, withinvestors finding few reasons to buy after a rally in theprevious session that took the S&P 500 index above 2,000 for thefirst time.

* The benchmark S&P failed to hold that level Monday, butended at a new closing high. Equities have rallied lately, withthe Dow and S&P advancing in seven of the last 10 sessions, andthe Nasdaq climbing in eight.

* That momentum is still considered intact, and the S&P'sprice-to-earnings ratio is within historical norms, leading manyanalysts to believe the market is not overvalued. Nonetheless,further gains may be a challenge without positive catalysts andamid potential headwinds such as a reduction in Federal Reservestimulus and a simmering conflict between Ukraine and Russia.

* Much of the market's recent gains have come on low volume,suggesting many traders may be reluctant to jump in at currentlevels.

* Among Tuesday's biggest premarket movers, Best Buy Co Inc reported second-quarter revenue that missed expectationsand forecast a drop in same-store sales in the second half ofthe year. Its shares fell 3 percent in premarket trading. DSW Inc rose 11 percent in premarkettrading after its adjusted earnings topped forecasts.

* S&P 500 e-mini futures rose 2.5 points and wereabove fair value, a formula that evaluates pricing by takinginto account interest rates, dividends and time to expiration onthe contract. Dow Jones industrial average e-mini futures added 24 points and Nasdaq 100 e-mini futures added 7.25 points.

* Biotechnology stocks were among the biggest drivers duringMonday's rally. That appeared to continue Tuesday, with KitePharma Inc up 18 percent to $26.38 after positiveresults in an early-stage study for an experimental cancerimmunotherapy. Achillion Pharmaceuticals (NasdaqGS: ACHN - news) was up 4.8 percent to $11.30 before the opening bell.Gilead Sciences Inc (NasdaqGS: GILD - news) rose 0.9 percent to $108.37.

* Digital Ally Inc jumped 12 percent to $14.01 inpremarket trading, extending a recent surge that has seen sharesof the wearable camera maker more than triple this month alone.The recent fatal police shooting of an unarmed black teenager inMissouri has fueled interest in the company's devices. The stockwas one of the Nasdaq's heaviest premarket movers.

* Inc late Monday agreed to buy the live-streaming gaming network Twitch Interactive for about $970million in cash. Shares (Frankfurt: DI6.F - news) rose 0.7 percent to $336.50.

* Durable goods jumped 22.6 percent in July, the biggestgain on record, though the number was skewed by stronginternational demand for aircraft. Excluding transportation,orders fell 0.8 percent. (Editing by Bernadette Baum)

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