June 12, 2018 / 1:14 PM / 4 months ago

US STOCKS-Wall St set to open flat after U.S.-North Korea summit

* U.S. consumer prices for May rise in line with expectations

* Twitter jumps after J.P. Morgan PT hike

* Telsa gains after Keybanc raises Model 3 delivery est

* Futures: Dow off 3 pts, S&P and Nasdaq up 1 pt each (Adds comment, details, updates prices)

By Sruthi Shankar

June 12 (Reuters) - U.S. stock futures were flat on Tuesday after the historic U.S.-North Korea summit failed to impress investors, who turned their focus to the Federal Reserve's two-day policy meeting.

President Donald Trump and North Korean leader Kim Jong Un pledged to work toward complete denuclearization of the Korean peninsula, while Washington committed to provide security guarantees for its old enemy.

But they gave few other specifics in a joint statement signed at the end of their summit in Singapore, and several analysts cast doubt on how effective the agreement would prove to be in the long run at getting North Korea to give up its cherished nuclear weapons.

"Markets are skeptical," said Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Massachusetts. "This is more of a case of 'we'll believe it when we see it', rather than actually reacting."

The U.S. Federal Reserve is widely expected to raise interest rates by a quarter percentage point at the policy meeting, which begins on Tuesday.

Investors are focused on how the U.S. central bank characterizes its monetary policy as borrowing costs return to more normal levels, while also looking for hints if the Fed is going for three or four rate hikes this year.

"The market would take two more in stride. The last time, the Fed was pretty evenly split (on three or four rate hikes). There would be a shift, but only a shift at the margins, which would be interpreted as a sign of the economy continuing to strengthen."

U.S. consumer prices rose marginally in May amid a slowdown in the pace of increases in the cost of gasoline, pointing to moderate inflation pressures.

The Labor Department said Consumer Price Index increased 0.2 percent following a similar gain in April, while the core CPI, which strips out the volatile food and energy components, rose to 2.2 percent, year-over-year. Both were in line with economists' estimates polled by Reuters.

With inflation flirting with the Fed's 2 percent target, policymakers have in recent days signaled they would not be too concerned if it overshot the target.

By 8:48 a.m. ET, Dow e-minis were down 3 points, or 0.01 percent. S&P 500 e-minis were up 1 points, or 0.04 percent and Nasdaq 100 e-minis were up 1 points, or 0.01 percent.

Among stocks, Twitter rose 3.0 percent in premarket trading after J.P. Morgan raised its price target by $11 to $50.

Tesla surged 3.4 percent after Keybanc raised its estimates for Model 3 deliveries for the second quarter and full-year.

Shares of AT&T Inc rose 0.9 percent ahead of a landmark ruling, due after the closing bell, that will determine if it can buy Time Warner Inc. (Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)

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