Stock futures rise on General Mills ahead of Fed
U.S. stock index futures pointed to a slightly higher open on Wednesday, ahead of a Federal Reserve policy statement and following results by food company General Mills Inc, which beat profit estimates.
General Mills
Later on Wednesday, with the Fed likely to keep interest rates unchanged, investors will focus on whether the central bank will signal any change in a policy that has flooded markets with cheap money. The Fed's statement is expected around 2:15 p.m. EDT.
People are waiting to see if in fact the Fed says something in terms of upgrading the economy while keeping interest rates at unprecedentedly low levels, said Art Hogan, chief market analyst at Jefferies & Co in New York.
The more they talk up the economy the more we have to understand that interest rates are going higher at some point, Hogan said.
S&P 500 futures rose 2.6 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 14 points and Nasdaq 100 futures added 4.75 points.
AMR Corp
AMR shares fell 1.2 percent to $8.34 before the bell while US Airways tumbled 9.8 percent to $4.72.
U.S. stocks rose on Tuesday, as investors bet the Fed will stick to its accommodative policy to foster economic recovery, boosting growth-sensitive sectors such as financials, technology and industrials.
(Editing by Padraic Cassidy)
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