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U.S. futures higher despite Fed jitters; Dow Jones up 0.69%

Published 09/03/2013, 07:01 AM
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Investing.com - U.S. stock futures pointed to a higher open on Tuesday, boosted by upbeat company news, although the possibility for the Federal Reserve to soon begin tapering its stimulus program continued to linger.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.69% climb, S&P 500 futures signaled a 0.91% jump, while the Nasdaq 100 futures indicated a 0.79% increase.

Investors remained cautious amid expectations that the Fed will start to unwind its stimulus program at its upcoming policy meeting on September 18.

Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.

On the Syrian front, U.S. President Barack Obama on Monday said that he has not made a final decision on a response to Syria's chemical weapons use, but that he is looking at limited action, not an open-ended commitment.

The telecom sector was expected to be active, after Verizon agreed to buy Vodafone's 45% stake in Verizon Wireless for USD130 billion.

According to a Bloomberg report, Verizon Communications is expected to issue USD40 billion to USD50 billion of bonds to help finance the purchase.

Separately, Microsoft announced that it had agreed to buy Nokia's handset business for EUR5.44 billion. The software company's shares plummeted 1.98% in pre-market trade, while Nokia shares skyrocketed 39.49%.

The deal changes the nature of both companies, as Nokia is exiting from the mobile-phone business while Microsoft is moving into hardware.

Elsewhere, CBS programs reportedly returned to Time Warner Cable in New York, Los Angeles and Dallas after the companies ended a one-month blackout, in time for the start of National Football League regular-season games.

Other stocks likely to be in focus included H&R Block, scheduled to report second-quarter earnings later in the day.

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 slid 0.35%, France’s CAC 40 retreated 0.52%, Germany's DAX declined 0.60%, while Britain's FTSE 100 fell 0.25%.

During the Asian trading session, Hong Kong's Hang Seng Index gained 0.99%, while Japan’s Nikkei 225 Index surged 2.99%.

Later in the day, the Institute of Supply Management was to release data on manufacturing activity.


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