Stock Futures Rise as Obama Taps Yellen as Fed Chief
NEW YORK ( TheStreet) -- Stock futures were pointing to a higher open on Wall Street Wednesday after President Obama said he is willing to negotiate with the Republicans if they in exchange work to promptly end the government shutdown and raise the debt ceiling even if it was only for a temporary four to six weeks.
In news that could calm markets, Obama is expected to nominate Fed Vice Chair Janet Yellen to become the next head of the Federal Reserve. Ben Bernanke's term ends on Jan. 31. Yellen's nomination is expected to be announced at 3 p.m. EDT, and is likely to guarantee a more prolonged period of record accommodative policies. The Fed's current vice-chairman has been an avid supporter of the central bank's current $85 billion bond-buying program. She would be the first woman to take on the Fed chair role.
Prior to the Yellen announcement, the Fed is scheduled to release a summary of its September policy meeting, a gathering at which policymakers maintained the current pace of their bond-buying program amid concerns that current fiscal policy is restraining economic growth. The minutes will be released at 2 p.m.
Futures for the S&P 500 were adding 4 points, or 5.4 points above fair value, to 1,654.5. Futures for the Dow Jones Industrial Average were up 26 points, or 36.47 points above fair value, to 14,740. Futures for the Nasdaq were ahead by 7.25 points, or 12.38 points above fair value, to 3,158.
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The FTSE 100 in London was down by 0.11% and the DAX in Germany was up by 0.17%. The Hong Kong Hang Seng settled down by 0.63% while the Nikkei 225 in Japan closed higher by 1.03%.