Futures jump on strong earnings; Fed takes center stage
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[November 01, 2017] By
(Reuters) - U.S. stock index futures
pointed to a strong opening for Wall Street on Wednesday, as an upbeat
third-quarter earnings season lifted sentiment while investors waited
for clues on future rate hikes from the latest Fed meeting.
* The Federal Reserve ends its two-day policy meeting later in the day
and will release its statement at 2:00 p.m. ET (1800 GMT).
* The central bank is expected to keep interest rates unchanged as
speculation swirls on who will be its next leader, but will likely point
to a firming economy as it edges closer to a possible rate rise next
* The White House has said President Donald Trump will announce his Fed
pick on Thursday. Trump is expected to choose Fed Governor Jerome
Powell, who is seen as more stock-market friendly, sources have told
* Investors were also keenly watching developments around a U.S. tax-cut
plan. Legislation expected on Wednesday has been delayed by a day as
lawmakers try to resolve differences.
* October ended on a strong note on Tuesday, with the major Wall Street
indexes recording their best monthly gains since February, supported by
technology and consumer staple stocks.
* Brent crude futures <LCOc1> jumped 1 percent to $61.58 per barrel, its
highest since mid-2015, as data showed OPEC has significantly improved
compliance with its pledged supply cuts and Russia is also widely
expected to keep to the deal. [O/R]
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Traders work on the floor of the American Stock Exchange (AMEX) at
the New York Stock Exchange (NYSE) in New York City, New York, U.S.,
October 27, 2017. REUTERS/Brendan McDermid
* ADP National Employment report due at 8:15 a.m. ET will likely show private
employers added 200,000 jobs in October, up from 135,000 in September.
* The data comes ahead of Friday's non-farm payrolls report for October. The
data will reveal if the labor market has strengthened after a hurricane-ravaged
* A separate report from the Institute for Supply Management is likely to show
its national manufacturing index slipped to 59.5 in October from 60.8 in
September. The report is due at 10:00 a.m. ET.
* Among early movers, US Steel jumped 8 percent after reporting
better-than-expected profit and sales.
* Facebook was up 1.3 percent ahead of the social media giant's earnings report
* Electronic Arts dipped more than 1 percent after the videogame publisher's
revenue forecast for the holiday shopping quarter narrowly missed estimates.
* Estee Lauder gained 1.52 percent after the cosmetics maker's sales beat
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)
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