NEW YORK—A surprise jump in durable goods orders is giving stocks a boost before the Federal Reserve's decision on interest rates. The Commerce Department said orders for big-ticket items rose 1.8 percent in May. The market was anticipating a decline. Later on Wednesday, the Fed is widely expected to leave its key rate unchanged at a range of zero to 0.25 percent. Its statement on the economy, however, will be parsed carefully for signals about future actions. In the first minutes of trading, the Dow Jones industrial average is up 42.25, or 0.5 percent, at 8,365.16. The Standard & Poor's 500 index is up 6.19, or 0.7 percent, at 901.29. The Nasdaq composite index is up 16.02, or 0.9 percent, at 1,780.94. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below. NEW YORK (AP)—A surprise jump in durable goods orders is giving stock futures a boost before the Federal Reserve's decision on interest rates. The stock market is set for a higher open Wednesday after the Commerce Department said orders for big-ticket manufactured items rose 1.8 percent in May. Economists surveyed by Thomson Reuters were anticipating a decline of 0.6 percent. The strong durable goods report comes ahead of the Fed's rate decision and assessment of the economy, as well as government data on new home sales. The Fed is widely expected to leave its key rate unchanged at a range of zero to 0.25 percent. The central bank's outlook for the economy, however, is less clear. Gauges of the economy have been improving, but they have not yet pointed to actual growth. Many investors are nervous that a recovery could be hampered if the Fed hikes interest rates or starts dismantling its emergency supports for the financial system too soon. "It's pretty obvious that the Fed has a delicate tightrope to walk here," said Craig Peckham, market strategist at Jefferies & Co. He said policy makers must acknowledge the long-term potential for inflation, but at the same time calm investors' worries about any near-term removal of liquidity from the system. "You'll see this statement dissected more closely than anything we've seen in last couple of meetings," Peckham said. Investors, many of whom have placed bets over the past several months on a late-year economic recovery, are on edge as the second half of 2009 approaches. The Dow Jones industrial average is up 27.1 percent from the 12-year lows reached March 9, but the index has fallen 5.4 percent since June 12. Before the market's open, Dow futures rose 70, or 0.9 percent, to 8,327. Standard & Poor's 500 index futures rose 8.70, or 1 percent, to 898.90, and Nasdaq 100 index futures rose 10, or 0.7 percent, to 1,434. Overseas stock prices also advanced. In corporate news, software maker Oracle Corp.'s results late Tuesday for its most recent quarter exceeded analysts' average forecast. Oracle shares gained about 4 percent in premarket trading. Economists surveyed by Thomson Reuters are predicting a 2.3 percent increase in May sales of new homes. The government report is scheduled for release at 10 a.m. Eastern time. Later Wednesday, the Treasury Department will auction $37 billion in five-year notes. Auctions have been going smoothly so far this year, but investors are looking for signs that demand for new Treasury supply might be waning. If demand trails off, the government will have to raise yields sharply to attract buyers. Treasury yields are closely tied to borrowing rates for consumers. Bond prices fell Wednesday ahead of the afternoon auction. The yield on the benchmark 10-year Treasury note, which moves opposite its price, edged up to 3.67 percent from 3.63 percent. Crude oil fell 24 cents to $69 a barrel in premarket trading on the New York Mercantile Exchange. The dollar was mixed against other major currencies. Gold prices rose. Overseas, Japan's Nikkei stock average rose 0.4 percent. In afternoon trading, Britain's FTSE 100 rose 0.3 percent, Germany's DAX index rose 0.9 percent, and France's CAC-40 rose 0.8 percent.

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