* Fed expected to continue stimulus amid lackluster data
* U.S. private sector adds 130,000 jobs in Oct-ADP
* Futures up: Dow 46 pts, S&P 2.8 pts, Nasdaq 14.75 pts
By Angela Moon
NEW YORK, Oct 30 U.S. stock index futures edged
higher on Wednesday, a day after the Dow and the S&P 500 indexes
hit a new closing record, on expectations that the Federal
Reserve's monthly bond purchases of $85 billion will be extended
into next year.
Shares of General Motors Co rose 1.5 percent in
premarket trading in the wake of better-than-expected quarterly
profit, thanks to strength in its core North American market and
a smaller-than-anticipated loss in Europe.
The Federal Reserve is expected to maintain its massive
bond-buying campaign when it concludes a two-day policy-making
meeting on Wednesday, and may indicate that its stimulus
measures will be extended into 2014 amid softer readings on the
A report by a payrolls processor showed early Wednesday that
U.S. private-sector employers added 130,000 jobs in October,
fewer than economists expected.
So far in this earnings season, 296 companies representing
66 percent of S&P 500's market capitalization have reported.
"All of the 10 sectors have beaten their earnings-per-share
expectations and the aggregate earnings surprise is 4.5
percent," said Jonathan Golub, chief U.S. market strategist at
RBC Capital Markets in New York.
S&P 500 futures rose 2.8 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 rose 46
points and Nasdaq 100 futures added 14.75 points.
Shares of Yelp Inc fell nearly 10 percent in
premarket trading a day after the business-search service firm
reported a wider third-quarter loss.
LinkedIn Corp shares dropped 3 percent in premarket
trading in the wake of the company's conservative forecast
Tuesday for revenue for the rest of the year.
Companies due to report Wednesday include Comcast,
Visa, Starbucks, MetLife and Kraft
The U.S. central bank, which will announce its policy
decision at 2:00 p.m. EDT (1800 GMT), has held interest rates
near zero since late 2008 and has quadrupled the size of its
balance sheet to more than $3.7 trillion through three rounds of
bond buying. The purchases are aimed at holding down longer-term
The Fed shocked markets in September by opting to maintain
its bond-buying program, after raising expectations over the
summer that it was ready to start scaling back the purchases.
The central bank's caution has since been vindicated.