U.S. stock futures edge up ahead of Fed rate decision

[June 14, 2017]  By Yashaswini Swamynathan

(Reuters) - U.S. stock index futures edged up on Wednesday as investors braced for a near-certain interest rate hike by the Federal Reserve.

Traders have placed a 94 percent chance of the central bank pulling the trigger on a second rate increase this year. The hike will push rates above 1 percent for the first time since the immediate aftermath of the collapse of Lehman Brothers in 2008.

The Fed will release its decision at 2:00 p.m. ET (1600 GMT) followed by Fed Chair Janet Yellen's press conference.

Investors will also be looking for any details on the Fed's plans to trim its $4.5 trillion balance sheet in the face of improving economic conditions.

Oil prices fell on Wednesday after data showed a build in U.S. crude stocks and OPEC reported a rise in its production despite a pledge to cut output. [O/R]

A rebound in technology shares drove U.S. stocks to record highs on Tuesday. Investors will test whether the recovery holds or if worries about valuations could dominate the sector.

The U.S. Commerce Department will issue a report on May retail sales, which are expected to show a smaller rise of 0.1 percent after a 0.4 percent gain in April. The report is due at 8:30 a.m. ET.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 2, 2017. REUTERS/Brendan McDermid

Shares of H&R Block rose 11.2 percent to $30.01 after the tax preparation service provider's fourth-quarter revenue and profit beat analysts' expectations.

Aldeyra Therapeutics dropped 18.6 percent to $4.15 after the company said it failed to meet a goal in its conjunctivitis trial.

Futures snapshot at 7:09 a.m. ET:

Dow e-minis  were up 37 points, or 0.17 percent, with 5,550 contracts changing hands.

S&P 500 e-minis were up 3 points, or 0.12 percent, with 92,828 contracts traded.

Nasdaq 100 e-minis were up 13.75 points, or 0.24 percent, on volume of 6,927 contracts.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)

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