* Futures down: Dow 32 pts, S&P 4.75 pts, Nasdaq 11.5 pts
By Tanya Agrawal
Nov 16 (Reuters) - U.S. stock index futures edged lower on Wednesday, a day after the Dow ended higher for the seventh day in a row following Donald Trump's election win.
* Trump's plans to cut taxes and raise infrastructure spending would boost economic activity, while his proposals to deport illegal immigrants and impose tariffs on cheap imports are seen driving inflation higher.
* That prospect has given rise to expectations that U.S. interest rates will rise faster than previously anticipated, boosting the dollar to 11-month highs.
* It would need a surprise for the Federal Reserve not to raise U.S. interest rates next month, St. Louis Fed President James Bullard said.
* Traders are pricing in a 90.6 percent chance that the central bank will raise rates at its December meeting, according to CME Group's FedWatch tool.
* The S&P has gained 1.9 percent since the election on Nov. 8. The Dow has risen 3.2 percent and closed at a record high for the past four days. Analysts expect the market to gain further.
* "With sentiment towards the U.S. economy turning bullish amid the rising optimism of higher economic growth under Trump's presidency, Wall Street could be poised for further gains moving forward," said Lukman Otunuga, research analyst at FXTM.
* Oil prices dipped, a day after one of its biggest rallies this year, as industry data showed U.S. crude stocks rose beyond expectations last week to add to an oversupplied market.
* Economic data scheduled to be released on Wednesday includes October's producer price index for final demand at 8:30 a.m. ET (1330 GMT), that likely remained unchanged at 0.3.
* Industrial output for October increased 0.2 percent, after a 0.1 percent gain in September, a report due at 9:15 a.m. ET is expected to show.
* Target was up 6.1 percent at $75.79 in premarket trading after the retailer's third-quarter profit rose.
* Lowe's fell 5.1 percent to $65.50 after the No. 2 U.S. home improvement chain cut its full-year profit forecast for the second time.
Futures snapshot at 6:53 a.m. ET:
* Dow e-minis were down 32 points, or 0.17 percent, with 24,631 contracts changing hands.
* S&P 500 e-minis were down 4.75 points, or 0.22 percent, with 132,193 contracts traded.
* Nasdaq 100 e-minis were down 11.5 points, or 0.24 percent, on volume of 21,400 contracts. (Reporting by Tanya Agrawal; Editing by Savio D'Souza)