RTRS: US STOCKS-Futures nearly 1 pct higher as GDP data awaited
U.S. stock index futures were set to open nearly 1 percent higher on Wednesday as investors were hopeful a reading on gross domestic product would fuel more optimism that the recession is subsiding.
* The release of advance first-quarter GDP data may indicate the slowdown was less brutal than initially thought. The economy is expected to have shrunk at a seasonally adjusted annual rate of 4.9 percent in the first quarter, after contracting 6.3 percent in the fourth quarter of 2008.
* But worries over the threat to the economy of a global outbreak of swine flu could weigh after a government official confirmed the first U.S. death from the new flu strain -- a 23-month-old child in Texas. (For details, see [ID:nN29381234]).
* The U.S. Federal Reserve holds its rate-setting meeting for a second day. Economists expect the Fed to hold its target range for its benchmark funds rate steady near zero -- as it has since December -- and will be looking for any comments to see if other methods of stimulating the economy are taking hold.
* Among the morning's earnings results, media group Time Warner Inc (TWX.N) posted flat first-quarter profit, weighed by a drop in advertising sales. [ID:nN29381658]. Time Warner shares were up 2.4 percent at $22.29.
* S&P 500 futures SPc1 rose 7.80 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 DJc1 climbed 71 points, and Nasdaq 100 NDc1 futures added 10.50 points.
* Computer server maker Sun Microsystems Inc (JAVA.O), in talks to be acquired by Oracle Corp (ORCL.O), reported a wider third-quarter loss late Tuesday as sales fell on lower technology spending and uncertainty over the company's future. [ID:nN272613]
* Shares in E*Trade Financial Corp (ETFC.O) were down 27.6 percent at $1.78 in early electronic trading on Wednesday, a day after the retail brokerage said it is facing regulatory pressure to boost capital as it posted its seventh straight quarterly loss. [ID:nN28349492]
* Other companies expected to report quarterly earnings include Visa Inc (V.N), Goodyear Tire & Rubber Co (GT.N) and Starbucks Corp (SBUX.O).
* Bank of America Corp (BAC.N) holds its annual shareholder meeting in Charlotte, North Carolina, amid reports it may have to raise more capital.
* Stocks fell Tuesday as fresh worries that major banks may need to raise more money offset reassuring economic data and a big dividend boost from IBM (IBM.N).
* The Dow is up 22.5 percent from its 12-year closing low on March 9. For the month of April alone, the Dow is up 5.4 percent. But it remains down 8.7 percent for the year.
