BARACK OBAMA

U.S. stocks slipped on Wednesday as a warning from FedEx , which said higher costs would crimp profits next year, overshadowed a surge in industrial production.

BP Plc on Wednesday agreed to a demand by U.S. President Barack Obama to pay $20 billion into a special fund to handle claims from its huge Gulf of Mexico oil spill and said it was suspending payment of dividends this year.

After considerable pressure brought to bear, President Barack Obama is slated to meet this week with BP executives at the White House. The topic at hand of course is how to deal with the oil crisis in the Gulf. As that crisis lingers on, it is imperative that all key leaders get together to work on solutions.

After suffering more than a year of abuse over its role in the financial crisis, the U.S. Federal Reserve on Wednesday was poised to beat back the most aggressive attempt to open its operations to congressional scrutiny.

Housing starts fell more than expected in May to a five-month low as a homebuyer tax credit expired while plunging energy costs pushed producer prices lower, buying time for the Federal Reserve to maintain its ultra-low interest rate policy.

Stock index futures fell on Wednesday, a day after Wall Street jumped more than 2 percent, on new concerns about Spain's fiscal problems, while investors awaited data on housing and producer prices.

After suffering more than a year of abuse over its role in the financial crisis, the U.S. Federal Reserve is poised to emerge with its powers relatively intact as lawmakers finalize a sweeping overhaul of financial regulations.

Stock index futures pointed to a lower open on Wall Street on Wednesday following the previous session's strong rally, with futures for the S&P 500 down 0.5 percent, Dow Jones futures down 0.4 percent and Nasdaq 100 futures down 0.4 percent at 0944 GMT.

Oil rose above $77 on Wednesday to reach the highest level since mid-May, tracking a recovery in global stock markets as risk appetite returns with easing concern about Europe's economy.

Credit-rating agencies like Moody's and Standard & Poor's dodged a bullet on Tuesday as lawmakers decided to strip out a provision in the Wall Street reform bill that would have upended their business model.

Lawmakers on Tuesday girded for a showdown over a measure that could upend the business model of credit rating agencies like Standard & Poor's and Moody's Corp., in the first real test of the congressional panel crafting a final Wall Street reform bill.

U.S. lawmakers blasted major oil companies on Tuesday for virtually worthless and cookie cutter plans to handle a deepwater oil disaster, with one top executive conceding the industry was ill prepared to handle big offshore spills.

Embattled credit-rating agencies like Moody's Corp and Standard & Poor's could catch a break on Tuesday when U.S. lawmakers sit down to craft a final rewrite of financial regulations.

U.S. lawmakers blasted major oil companies on Tuesday for virtually worthless and cookie cutter plans to handle a deepwater oil disaster as top industry executives testified on BP's massive spill in the Gulf of Mexico.

Executives from other major oil companies turned on BP Plc and defended their own drilling practices during a U.S. congressional hearing on Tuesday as they sought to stave off new government regulations in the wake of BP's oil spill in the Gulf of Mexico.

Stock index futures pointed to a slightly higher open on Wall Street on Tuesday, with futures for the S&P 500 up 0.25 percent, Dow Jones futures up 0.16 percent and Nasdaq 100 futures up 0.04 percent at 0820 GMT.

Banks looked increasingly likely to face some limits on swap trading as a proposal to rein in risky business practices gained traction among lawmakers negotiating a landmark Wall Street reform bill.

Top competitors are expected to distance themselves from BP Plc on Tuesday as normally clubby oil industry executives gather for a Capitol Hill grilling on the worst oil spill in U.S. history.

Wall Street is making a last stand against regulatory reform in behind-the-scenes meetings in Congress, where lobbyists hope to use high-stakes horse trading to blunt provisions that could cost the industry billions of dollars.

The U.S. Federal Reserve's exit from its ultra-low interest rate policy will take a significant period of time, a San Francisco Fed economist said in a paper published on Monday.

The worst oil spill in U.S. history has created an unprecedented financial, legal, regulatory and environmental crisis for companies that operate in the Gulf of Mexico, Moody's Investors Service said on Monday.