US stock market set for higher open as investors await Fed statement, economic data

Stock futures rise ahead of Fed, economic data

NEW YORK — Investors are hoping for reassuring words from the Federal Reserve.

Stock futures rose modestly, indicating a higher open on Wall Street, ahead of the Fed’s decision on interest rates and assessment of the economy. The market is also awaiting reports Wednesday on durable goods orders and new home sales.

The central bank is widely expected to leave its key rate unchanged at a range of zero to 0.25 percent. Its outlook for the economy, however, is less clear.

Investors, many of whom have placed bets over the past several months on a late-year economic recovery, are on edge as the second half of 2009 approaches. The Dow Jones industrial average is up 27.1 percent from the 12-year lows reached March 9, but the index has fallen 5.4 percent since June 12.

Gauges of the economy have been improving, but they not yet pointed to actual growth, and many traders are pricing in a Fed rate hike by the end of the year. Higher interest rates tend to hamper economic growth by discouraging borrowing.

Before the market’s open, Dow futures rose 34, or 0.4 percent, to 8,291. Standard & Poor’s 500 index futures rose 4.30, or 0.5 percent, to 894.50, and Nasdaq 100 index futures rose 5.25, or 0.4 percent, to 1,429.25.

Overseas stock prices were also higher.

In corporate news, software maker Oracle Corp.’s results late Tuesday for its most recent quarter exceeded analysts’ average forecast. Oracle shares rose about 3.7 percent in premarket trading.

Economists surveyed by Thomson Reuters predict the Commerce Department on Wednesday will report a 0.6 percent decline in May orders for durable goods, and a 2.3 percent increase in May sales of new homes.

Later Wednesday, the Treasury Department will auction $37 billion in five-year notes. Auctions have been going smoothly so far, but investors are looking for signs that demand for new Treasury supply might be waning. If demand trails off, the government will have to raise yields sharply to attract buyers. Treasury yields are closely tied to borrowing rates for consumers.

Bond prices slipped in early trading Wednesday ahead of the afternoon auction. The yield on the benchmark 10-year Treasury note, which moves opposite its price, edged up to 3.65 percent from 3.63 percent.

Crude oil fell 82 cents to $68.42 a barrel in premarket trading on the New York Mercantile Exchange.

The dollar was mixed against other major currencies. Gold prices rose.

Overseas, Japan’s Nikkei stock average rose 0.4 percent. In afternoon trading, Britain’s FTSE 100 rose 0.1 percent, Germany’s DAX index rose 0.8 percent, and France’s CAC-40 rose 0.8 percent.