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CNBC ON DIGG

Futures Edge Up Before Fed Statement

Published: Wednesday, 23 Sep 2009 | 8:53 AM ET

Text Size

By: Peter Schacknow
Senior Producer

Futures were indicating a slightly higher open for stocks as Wall Street readies itself for the latest Fed statement on interest rates and the economy.

The new day opens with the Dow, the S&P 500, and the Nasdaq coming off fresh 2009 closing highs, with investors now squarely focused on 2:15 pm ET this afternoon. That's when the Fed's Open Market Committee issues the report from its two-day meeting.

FOR INVESTORS...

While policymakers are widely expected to keep rates near zero, investors will be watching for a more optimistic tone on the economy and perhaps more details on exit strategies for the extraordinary measures implemented to deal with the financial crisis.

Ford [F Loading... () ] helped lift the market's spirits early on, as CEO Alan Mulally said the industry is recovering and he expects sales to rise over the next two years. While Mulally said the domestic market is "looking good" he added that the company is looking to the Asia Pacific market as a major contributor for future sales. Shares rose 2 percent in premarket trading.

Also on the positive side, mortgage applications jumped 12.8 percent last week to their highest level since late May. Interest in home-buying increased as mortgage rates fell below 5 percent.

Shares of Seagate Technology [STX Loading... () ] gained 2.7 percent after Deutsche Bank upgraded the small-cap computer disk maker to a "buy," based on expectations for better demand and higher margins.

In earnings, AutoZone [AZO Loading... () ] narrowly missed analyst estimates with profit of $4.43 for its fourth quarter. Analysts were expecting $4.45; shares fell 1.9 percent premarket.

General Mills [GIS Loading... () ] reported a higher-than-expected quarterly profit, helped by strong sales in the United States and lower commodity costs, and raised its full-year forecast. Shares gained about 3 percent premarket.

American Airlines parent AMR [AMR Loading... () ] sold $250 million in convertible senior notes due in 2014. Shares fell 1.3 percent premarket.

And Palm [PALM Loading... () ] shares edged higher premarket after the company said it expects to raise $313.1 million from a sale of shares at $16.25 each, a 5 percent discount to Tuesday's closing price. Palm shares had been up about 15 percent over the past several days amid talks of a possible takeover bid as traders scurried to cover short positions.

Life insurers could be in focus as well after Morgan Stanley downgraded the group to "in line" from "attractive."

Among the specific firms Morgan targeted were Prudential Financial [PRU Loading... () ], which it lowered to "equal weight," and Union Group [UNM Loading... () ], which it cut to "underweight." Prudential shares dropped 2 percent premarket.

In other news, at 10 am ET President Obama will speak before the United Nations General Assembly in New York. At 10:30 am, the Energy Department will release its weekly report on crude oil inventories.