Wednesday, September 22, 2010

US STOCKS-Futures off after Fed statement; gold at new high

NEW YORK: U.S. stock index futures fell on Wednesday, Sept 22 on concerns about the inflation outlook and as the Federal Reserve inched closer to expanding its quantitative easing policy, sending gold prices to a record high.

* Gold hit a record high above $1,290 per ounce and the U.S. two-year Treasury-note yield fell to a record low as Treasury prices extended gains after the Fed raised the possibility for further monetary easing to spur the economy. it also said core inflation was running below levels at which policymakers are comfortable.

* Potentially unsettling markets, White House economic adviser Larry Summers said he will leave as director of the White House National Economic Council, marking a major staff shake-up for U.S. President Barack Obama as he faces pressure to revive the economy.

* Microsoft Corp said late Tuesday it is raising its quarterly dividend by 23 percent, its first increase in two years, marking the latest move by a TECHNOLOGY [] company to return cash to shareholders frustrated by stagnant stock prices. The stock was down 0.6 percent at $25 in premarket trading.

* Shares in software maker Adobe Systems Inc slid 20.2 to $26.22 after the company gave a lower-than-expect revenue forecast late Tuesday.

* S&P 500 futures fell 4.6 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dropped 31 points, and Nasdaq 100 futures dipped 8 points.

* U.S. Treasury Secretary Timothy Geithner is to appear at a House Financial Services Committee hearing on the state of the international financial system.

* On the earnings front, cereal maker General Mills Inc reported quarterly results early Wednesday.

* Investors will also watch for results from retailer Bed Bath & Beyond Inc and Darden Restaurants Inc for clues on consumer spending.

* EBay Inc shares fell 0.8 percent to $24.54 premarket after the online auctioneer forecast third-quarter results near the high end of its July outlook.

* China's foreign ministry told the United States to stop pushing for a stronger yuan, saying Washington should instead focus on spurring its slumping economy. The yuan extended gains to a ninth day, its longest rally since it a revaluation in July 2005.

* India is aiming to finalize a $5.8 billion defense agreement with the U.S. before a November visit by President Obama, potentially the biggest India-U.S. defense pact ever. India would acquire 10 Boeing Co C-17 Globemaster III transporter planes. - Reuters


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