* Central bank policy to remain in focus
* Freeport-McMoRan down after force majeure on mine
* Celgene up on share repurchase program
* Futures up: Dow 78 pts, S&P 7.4 pts, Nasdaq 9.25 pts
By Leah Schnurr
NEW YORK, June 12 Wall Street was poised to open
higher on Wednesday, recovering after a selloff in the previous
session, even as questions lingered over how soon central banks
will begin to scale back supportive measures.
The benchmark S&P 500 fell 1 percent on Tuesday in
volatile trading after Japan's central bank disappointed markets
by holding its monetary policy steady.
The lack of further action kindled unease over when the
ultra-loose policy put in place by global central banks will be
wound down, particularly by the Federal Reserve.
The monetary efforts to boost the economic recovery have
been a pillar of the rally in U.S. equities this year, and
uncertainty over when the measures will be reined in has
prompted investors to unwind trades built around such support.
Markets regained some footing on Wednesday, with the dollar
recovering and European shares rising. Treasuries prices turned
lower after earlier edging up.
"I think in general the tone is a little more constructive,"
said Art Hogan, managing director at Lazard Capital Markets in
Some investors are preparing for the possibility the Fed
could slow the pace of its $85 billion-a-month bond purchase
program by the end of the year, which means the market is likely
in for a gradual consolidation, Hogan said.
"My guess is by the time we get the tapering, the market
will have discounted that event and it's not going to be
something that causes a selloff," said Hogan.
S&P 500 futures rose 7.4 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 78
points, and Nasdaq 100 futures added 9.25 points.
Freeport-McMoRan Copper & Gold fell 2.4 percent to
$29.60 after declaring force majeure on a mine in Indonesia,
freeing itself from obligations to deliver copper concentrate
due to a production halt following an accident.
Celgene Corp rose 1.9 percent to $121.00 in light
premarket trading after the company announced an additional
$3-billion share repurchase program.
First Solar tumbled 5.7 percent to $49.31, a day
after the company reaffirmed its 2013 guidance and announced an
8.5 million share offering.
Cooper Tire & Rubber Co surged more than 40 percent
after India's Apollo Tyres Ltd said it would buy the
company for about $2.5 billion. Cooper Tire shot up 40.3 percent
On the economic front, another surge in interest rates last
week pushed prospective U.S. homebuyers to act as demand for
applications for mortgages rose for the first time in a month.