US stock futures rise as investors ready for Federal Reserve decision on interest rates
NEW YORK -- Stock futures rose Wednesday as investors awaited the results of the Federal Reserve's two-day meeting on interest rates.
Wall Street widely expects a quarter-point rate cut. Although oil is hovering near an all-time high, and inflation remains a concern, the central bank has indicated that tighter credit conditions and a housing slump pose a threat to economic growth. The Fed could lower rates to stimulate business activity amid the turmoil.
Last month, the Fed surprised the market with a larger-than-expected half-point reduction in the benchmark federal funds rate. The funds rate currently stands at 4.75 percent.
Dow Jones industrial average futures rose 39.00, or 0.30 percent, to 13,861.00. Standard & Poor's 500 index futures gained 6.80, or 0.44 percent, to 1,542.80. Nasdaq 100 index futures rose 9.25, or 0.42 percent, to 2,227.00.
The Dow lost nearly 78 points on Tuesday, while broader stock indicators were mixed.
Investors will also be watching for Wednesday's economic news, including an initial estimate of third-quarter economic growth and the Chicago purchasing managers index of manufacturing activity in the Midwest.
Third-quarter earnings are still flowing in.
Packaged foods company Kraft Foods Inc. said profit fell 20 percent in the third quarter due to a gain in the prior quarter and higher dairy costs. Autoparts maker Visteon Corp. narrowed its loss in the third quarter as cost-cutting tied to its restructuring effort helped offset lower revenue.
Overseas markets mostly moved higher.
Britain's FTSE 100 rose 0.49 percent, Germany's DAX index added 0.24, and France's CAC-40 gained 0.51 percent. Japan's Nikkei stock average rose 0.52 percent, while Hong Kong's Hang Seng index fell 0.90 percent.
In commodities, oil prices edged up 20 cents to $90.58 a barrel in preopening trading on the New York Mercantile Exchange, while gold prices fluctuated. Expectations for lower interest rates further undermined the dollar, which slipped to a record low against the euro of $1.4466.