* Futures up: Dow 64 pts, S&P 5.5 pts, Nasdaq 20.25 pts
By Tanya Agrawal
June 26 (Reuters) - U.S. stock index futures were higher as oil prices rebounded, while investors awaited economic data for a reading on the health of the economy.
* Oil rose for a third straight session, as speculators took advantage of last week’s drop to seven-month lows, although a relentless increase in U.S. supply and little evidence of a widespread drop in global inventories capped gains.
* The recent drop in oil prices have spurred concerns about low inflation, which stubbornly remains below the Federal Reserve’s 2 percent target rate.
* The central bank raised rates this month for the second time this year and is expected to raise it again. Futures imply only a 50 percent chance of another rate hike by December.
* Fed Chair Janet Yellen speaks on London on Tuesday and investors will look for any clues to the rate outlook, after mixed views from other Fed officials in recent days.
* On Monday, San Francisco Fed President John Williams said the Fed needs to raise rates gradually or the economy runs the risk of overheating.
* Data is expected to show new orders for key U.S.-made capital goods likely rose slightly in May, with non-defense orders, a closely watched proxy for business spending plans, probably rising 0.3 percent. The report is due at 8:30 a.m. ET (1230 GMT).
* U.S. stocks ended higher on Friday after a last-minute trading spike, helped by gains in technology sector, which offset weakness in financial stocks, sending the Nasdaq higher and giving it a weekly gain for the first time in three weeks.
* Shares of Portola Pharmaceuticals were up 4 percent at $58.32 in premarket trading, after the FDA, on Friday, approved a new oral blood-thinner made by the company.
* Micron was up 1.5 percent at $32.20 after Cowen & Co increased its price target on the chipmaker’s stock.
Futures snapshot at 7:00 a.m. ET:
* Dow e-minis were up 64 points, or 0.3 percent, with 16,790 contracts changing hands.
* S&P 500 e-minis were up 5.5 points, or 0.23 percent, with 94,373 contracts traded.
* Nasdaq 100 e-minis were up 20.25 points, or 0.35 percent, on volume of 19,720 contracts. (Reporting by Tanya Agrawal; Editing by Arun Koyyur)