Stock futures boosted ahead of Fed decision

FRANKFURT (MarketWatch) — U.S. stock-index futures traded higher Wednesday, buoyed as investors looked ahead to the conclusion of a meeting of Federal Reserve policy makers with expectations their policy statement will point the way to further monetary stimulus.

Futures on the Dow Jones Industrial Average DJU2 +0.44%  rose 49 points to 12,998.

S&P 500 Index futures SPU2 +0.32%  gained 5 points to 1,379.60, while Nasdaq-100 futures NDU2 +0.42%  advanced 12.75 points to 2,649.25.

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“A disappointment seems likely … with [Federal Reserve Chairman] Ben Bernanke and company opting not to stray from familiar territory. Such an outcome is likely to weigh on risk appetite anew,” said Ilya Spivak, currency strategist at DailyFX. “Yields across the maturity spectrum are hovering near record lows having arrived there without new stimulus since QE2 ended in June 2011.”

Economists largely expect the Fed to take only a small step, extending its pledge to keep rates exceptionally low out until mid-2015. That pledge is currently in place through late 2014. The Fed will announce any policy moves at 2:15 p.m. Eastern. Read more about the Fed meeting.

Investors will also digest more economic data ahead of the Fed announcement. The Institute for Supply Management’s closely watched manufacturing gauge for July is set for release at 10 a.m. Eastern and is forecast to rise to 50.2% from 49.7% in June.

The ADP estimate of private payroll activity for July is set for release at 8:15 a.m. Eastern.

Earnings season continues, with results expected ahead of the opening bell from utility Exelon Corp. EXC -0.94% as well as Dominion Resources Inc. D -1.11% , Devon Energy Corp. DVN -0.15% , Burger King Worldwide Inc. BKW -0.07%  and others.

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 Reuters

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European stocks remained higher, with the Stoxx 600 Europe index XX:SXXP +0.18%  up 0.3%. The European Central Bank meets Thursday amid uncertainty over prospects for significant action after ECB President Mario Draghi vowed the institution would do whatever was necessary within its mandate to save the euro. Read Europe Markets.

Resistance by German officials to resuming ECB purchases of distressed government bonds has dampened expectations somewhat for big measures.

U.S. stocks closed lower Tuesday on uncertainty ahead of this week’s central-bank meetings but ended July with monthly gains.

Nymex crude-oil futures CLU2 +0.28%  rose 10 cents to $88.16 in electronic trading Wednesday. Gold futures GCQ2 +0.23%  gained $4.40 to change hands at $1,614.90 an ounce.

The dollar index DXY -0.12% , which measures the U.S. unit against a basket of six major rivals, was little changed at 82.604. The euro EURUSD +0.04%  edged up 0.1% versus the dollar to $1.2303, while the U.S. currency USDJPY +0.03%  was flat at ¥78.118.

William L. Watts is MarketWatch's European bureau chief, based in Frankfurt.