Markets set to rally as Summers withdraws from Fed consideration

U.S. stock index futures are soaring this morning, following the weekend withdrawal of former Treasury Secretary Lawrence Summers from consideration as the next Fed chairman. Investors had perceived Summers as scaling back the Fed's accommodative monetary policy more quickly than other candidates.

Aside from the Summers news, the markets are focusing on this week's Fed policy meeting, at which it's expected the Fed will begin tapering its bond-buying program. The central bank's policy statement will be out Wednesday, followed by a news conference with Fed chairman Ben Bernanke.

The Fed is also the author of today's most prominent economic report, the latest numbers on industrial production and factory capacity utilization. Economists are looking for a 0.4 percent rise in August industrial production following an unchanged reading in July, while capacity utilization is seen rising to 77.8 percent in August from July's 77.6 percent. The numbers will be issued at 9:15 a.m. ET.

There are no earnings reports of note on today's calendar.

J.C. Penney (JCP) is among our stocks to watch, with Vornado Realty (VNO) chief executive Steven Roth stepping down from the retailer's board of directors. In an SEC filing, Vornado said it would be reviewing its 6.1 percent stake in the retailer.

WWE (WWE) has cut its earnings outlook for 2013, on slower sales and higher costs. However, the producer of professional wrestling events said future earnings will be helped by the rising value of the company's content.

Boeing (BA) is moving closer to striking a $7.64 billion jet fighter deal with South Korea, according to Reuters. The deal involves Boeing's F-15 Silent Eagle aircraft. In a separate story, Boeing plans to fly the newest version of its Dreamliner, the 787-9, as soon as tomorrow. This version of the aircraft has a longer range and carries more passengers. (AMZN) is among the companies involved in a tax probe being conducted by the European Commission, according to London's Sunday Times. The paper said Amazon and others are being investigated to see whether they have secured preferential corporate tax rates.