US Futures Point Higher as Fed Speakers Suggest Stimulus to Continue


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Stock futures pointed to a higher open, recovering from a decline yesterday as investors may have been convinced that the U.S. Federal Reserve will maintain its $85 billion-a-month asset purchasing program after Boston Fed President Eric Rosengren said the Fed is in no hurry to raise short-term rates and that the decision to taper is dependent on data.

Later today, Fed President Sandra Pianalto will speak on the housing sector and the economic outlook. Tomorrow the advance Q3 GDP report is due out while the October jobs report is due out Friday.

Meanwhile, Goldman Sachs economist Jan Hatzius said in a report yesterday that he expects the Fed to change its baseline for determining interest rates. Currently, the central bank follows the Evans Rule, under which it won't hike rates until either unemployment falls to 6.5% or inflation rises to 2.5%. Hatzius believes the Fed will lower the unemployment threshold to 6.0%. Hatzius reportedly cited papers by Fed staff economists William English and David Wilcox that support such a move.

In equities, Tesla Motors ( TSLA ) dropped 11.20% in pre-market trade after setting a Q4 guidance below expectations while Time Warner ( TWX ) rose 2.23% after reaffirming its 2013 outlook.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities
More Headlines for: TSLA , TWX

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