U.S. markets await statement from policy makers about economic outlook; no rate change seen.
October 28, 2003: 5:26 AM EST
NEW YORK (CNN/Money) - Signs from Federal Reserve policy makers that the economy is turning around will be anxiously awaited Tuesday by U.S. stock investors, who will also consider new economic reports and more quarterly results.
At 5:25 a.m. ET, futures pointed to a higher start for the major indexes.
The Fed is expected to hold key rates at their lowest levels in more than four decades. But what's up in the air is what their meeting statement, due around 2:15 p.m. ET, will say about the shape of the economy. Some observers are concerned that if the Fed keeps low rates going past the start of a turnaround, it could trigger a wave of inflation down the road.
Before the meeting announcement, investors will get two economic reports. About an hour prior to the start of trading, the government issues its September report on durable goods orders, with economists surveyed by Briefing.com expecting a 1 percent rise after a 1.1 percent drop in August.
After trading starts, the Conference Board releases its October report on consumer confidence. The index is seen climbing to 79.3 from 76.8 in September.
While no Dow components are scheduled to report results Tuesday, some big name companies are expected to weigh in. Among them are regional phone service provider Verizon Communications (VZ: Research, Estimates), biotech developer Biogen (BGEN: Research, Estimates) and paint splotcher Sherwin-Williams (SHW: Research, Estimates).
The Dow Jones industrial average began the week Monday with a modest 0.3 percent gain aided in part by big merger announcements in the banking and health care management industries. The Nasdaq composite index rose by a more substantial 0.9 percent (see chart for details).
Asian-Pacific stocks ended higher Tuesday, buoyed by the U.S. gains, with Tokyo's Nikkei index up 1 percent. European markets rose in early trading. (Check the latest on world markets)
Among U.S. stocks trading in Europe, Bank of America (BAC: Research, Estimates) rose 1 percent on the day after it announced a proposed $47 billion acquisition of FleetBoston Financial (FBF: Research, Estimates).
Treasury prices fell in early trading, sending the 10-year note yield up to 4.28 percent from 4.26 percent late Monday. The dollar slipped against the yen, although it was off the three-year low around ¥108.20 reached overnight; the U.S. currency was higher versus the euro.
Brent oil futures slipped 21 cents to $28.18 a barrel in London, where gold was lower in early trading.
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