US pre-open: Stocks to rise as Fed kicks off policy meeting
US stocks looked set for a positive open on Tuesday as investors eyed the start of the Federal Reserve's two-day policy meeting.
At 1225 GMT, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all up 0.4%.
James Hughes, chief market analyst at Axi Trader, said: "Wall Street indices posted modest gains during yesterday’s session and futures prices suggest that the trend will be maintained at the opening bell. Optimism that the Federal Reserve will maintain its cautious tone over monetary policy and possibly provide further clarity over the timing of any move in interest rates is lending support, although markets do seem to be looking for that goldilocks zone once again. There’s a meaningful risk that if the Fed lays down too cautious a picture, US equities will be rattled by the accompany fall in domestic demand.
"US economic data today will once again be relatively thin on the ground, although January’s factory order data, due for release shortly after the opening bell, could provide some fresh direction. A month-on-month improvement has been forecast here, so failure to deliver that has the potential to increase the level of caution over just how dovish the Fed will be tomorrow."
Factory orders, due out at 1400 GMT, are expected to have risen 0.3% on the month in January compared to a 0.1% increase in December.
On the corporate front, delivery company FedEx is slated to report earnings after the bell.
Elsewhere, Altimmune shares surged 37% in pre-market trade after the company reported additional positive data from its flu treatment and said it was seeking development and commercialisation partnerships.
Retailer Michaels Cos was likely to see active trade after it posted better-than-expected fourth-quarter earnings and revenue, although its outlook for this year was disappointing.
Discount footwear retailer DSW looked set for losses at the open after its full-year adjusted profit fell short of analysts' expectations.