By Polya Lesova
U.S. stock futures edged higher on Wednesday, as investors
waited to learn whether the Federal Reserve has decided to take
more measures to buoy the sluggish economy.
Futures on the Dow Jones Industrial Average rose 19 points to
11,354 and those on the Standard & Poor's 500 stock index rose
1.8 points to 1,197.80.
Nasdaq 100 futures rose 2.25 points to 2,298.75.
The blue-chip Dow index (DJI) finished marginally higher
Tuesday, as the Federal Open Market Committee began its two-day
meeting.
The spotlight will remain on the FOMC Wednesday, with a policy
statement expected at 2:15 p.m. ET.
With the federal-funds rate near zero, the Fed cannot reduce
rates any further to boost the economy, so it may resort to more
unconventional measures. Some analysts expect the Fed to announce
some form of the so-called Operation Twist, or swapping
shorter-maturity government securities for longer-dated ones in an
effort to lower longer-term rates.
"The reason why the market is so dead set on more stimulus is
because the recovery in the U.S. has come to a screeching halt and
everyone including the Fed agrees that the economy desperately
needs help," said Kathy Lien, director of global research and
analysis at GFT, in a note.
Strategists at ING Bank said with little prospect of meaningful
fiscal stimulus, "salvation lies with the Fed and the Fed
alone."
On the economic calendar, data on U.S. existing-home sales are
due at 10 a.m. ET.
In Europe, equity markets were mostly lower, with the Stoxx 600
index down 0.5%.
M&A
Deal news heated up Wednesday. Brewing giant SABMiller PLC
(SAB.JO) agreed to acquire Foster's Group Ltd. (FGL.AU) for 5.10
Australian dollars per share, valuing the Australian firm at $10.17
billion.
In the energy sector, Apache Corp. (APA) agreed to pay $1.75
billion for Exxon Mobil Corp.'s (XOM) U.K. North Sea assets,
including the Beryl field and other properties.
Shares of Adobe Systems Inc. (ADBE) rose more than 6% in
pre-opening trade. After the close of markets Tuesday, Adobe said
it earned 55 cents excluding one-time items in the third quarter,
on revenue of just over $1.01 billion. It also forecast
fourth-quarter adjusted earnings in a range of 57 cents to 64 cents
a share on revenue of $1.08 billion to nearly $1.13 billion.
Shares of Oracle Corp. (ORCL) gained 4.8% in pre-market trading
after it reported late on Tuesday that fiscal first-quarter rose
36%, a result that one analyst said should dispel worries of a
major slump in corporate technology budgets.
Microsoft Corp. (MSFT) shares were little changed before the
bell. The company said late Tuesday that its board approved a 25%
rise in the dividend. It also said it will continue repurchasing
stock under its $40 billion buyback program, in which $27.8 billion
in shares have been repurchased to date.
General Mills Inc. (GIS) was scheduled to release results ahead
of the market open.
-By Polya Lesova; 415-439-6400; AskNewswires@dowjones.com