Economists are divided on rate move amid China, global growth Cablevision surges after Altice agrees to take it over U.S. stock-index futures declined, as investors turned cautious after a two-day rally, before today’s Federal Reserve decision on interest rates. Futures on the Standard & Poor’s 500 Index expiring in December fell 0.2 percent to 1,984.75 at 6:33 a.m. in New York. Dow Jones Industrial Average contracts slid 22 points, or 0.1 percent, to 16,642. U.S. stocks jumped to a four-week high on Wednesday, spurred by a rally in energy shares and deal activity among beer brewers, while Fed policy makers debated whether to raise the cost of borrowing. If they do, it will be the first increase in nine years. “The closer we get to the rate decision of the Fed, the more nervous the markets get,’’ said Christian Zogg, who helps oversee about $10 billion at LLB Asset Management in Vaduz, Liechtenstein. “If they raise, the first reaction will be negative, but then after a few days the market will come back because the market will realize that a 25 basis-point move has no material impact on the economy.’’ Speculation increased that the Fed would delay a hike as China ignited concern that its slowdown could weigh on global growth. Traders are pricing in a 34 percent chance of action on Thursday, down from 48 percent before China’s currency devaluation last month, while 54 of 113 analysts surveyed by Bloomberg predict some kind of increase. Odds of a move at the December meeting are about 65 percent. The cost of hedging against stock losses is now double what it was before the last Fed meeting in July, and more than twice the price when the central bank began pulling back on its stimulus program in December 2013. Equities have been particularly volatile amid concerns about China and the Fed’s intentions. While the Chicago Board Options Exchange Volatility Index has slipped 48 percent from its high last month, it was still 38 percent above its annual average. The measure of market turbulence known as the VIX declined 5.3 percent Wednesday. Even amid the stocks swings, the S&P 500 has rebounded 6.8 percent since a low last month. The gauge is down 3.1 percent this year, and 6.4 percent below its record set in May. Oracle Corp. declined 1.4 percent in pre-market trading after reporting first-quarter revenue that fell short of analysts’ projections. Peabody Energy Corp. tumbled 15 percent after shareholders authorized a reverse stock split designed to keep the company listed on the New York Stock Exchange. Cablevision Systems Corp. advanced 14 percent after Altice NV agreed to buy the cable TV and Internet service provider in a $17.7 billion deal.

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