* President Obama to nominate Yellen as Fed chair Wed
* Alcoa rises, Yum falls after earnings
* Futures up: Dow 43 pts, S&P 6 pts, Nasdaq 10.5 pts
By Chuck Mikolajczak
NEW YORK, Oct 9 U.S. stock index futures rose on
Wednesday, indicating the S&P 500 may rebound from Tuesday's
drop - its worst since August - after Janet Yellen was picked as
the next chairman of the U.S. Federal Reserve.
* U.S. President Barack Obama will nominate Fed number two
Yellen on Wednesday. Investors expect her to tread carefully in
winding down economic stimulus, and to provide continuity with
the policies established under Fed Chairman Ben Bernanke, whose
second term is due to expire on Jan. 31.
* The S&P 500 dropped 1.2 percent on Tuesday, its
worst decline since Aug. 27, sending the benchmark index to its
lowest since Sept. 6 as traders cashed in gains in some of the
year's best performers.
* In Washington, Obama said he would not hold talks on ways
to end the fiscal impasse while under threat from conservative
Republicans, but agreed to discuss anything, including his
healthcare plan, if they restore government funding and raise
the debt limit.
* The crisis in Washington threatens to damage the fiscal
standing of the U.S. and to derail its economic recovery.
* S&P 500 futures rose 6 points and were above 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 gained 43
points and Nasdaq 100 futures added 10.5 points.
* Alcoa Inc climbed 3 percent to $8.18 in premarket
trading after the aluminum producer reported better than
expected earnings, as strength at the unit that sells auto parts
and other complex items helped offset lower metal prices.
* Costco Wholesale Corp posted a 1 percent rise in
quarterly profit and a three percent increase in its same-store
sales for the month of September.
* Yum! Brands Inc slumped 7.2 percent to $66.50 in
light premarket trading after the KFC parent warned it will take
longer than expected for its China restaurant sales to rebound,
delaying a recovery in the market that accounts for more than
half of the company's overall operating profit.
* According to Thomson Reuters data, third-quarter earnings
are expected to grow 4.3 percent, and revenue 3 percent.
* European shares steadied, with one-month lows attracting
buyers and with investors balancing the continued U.S. fiscal
deadlock against expectations of continuity from the new Federal
* Asian shares sagged as the U.S. budget deadlock chipped
away at investors' confidence that a deal would be reached
before a mid-October deadline to avoid a historic debt default.