Futures suggest higher stock market open By JOE BEL BRUNO, AP Business Writer

Futures suggest higher stock market open By JOE BEL BRUNO, AP Business Writer
1 hour, 5 minutes ago



NEW YORK - Stock futures bounded higher Wednesday on speculation that the Federal Reserve will move to mitigate a growing credit crunch by cutting interest rates.

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Wall Street ended mixed Tuesday, with the Dow Jones industrials giving up some 30 points while both the Nasdaq composite and Standard & Poor's 500 finished slightly higher. Investors weighed statements from government officials and policymakers over if and when the Fed will move to cut interest rates.

While that debate continues, investors got some boost on speculation that takeovers might begin to ramp up since corporate valuations are lower. Mergers and acquisitions, especially by private equity firms, have been one of the market's biggest drivers this year.

Online brokerages TD Ameritrade Holding Corp. and E-Trade Financial Corp. are said to have been in discussions about a possible deal for weeks, according to The Wall Street Journal. However, the report said they are not close to a deal.

Meanwhile, Nymex Holdings Inc. Chairman Richard Schaeffer said Tuesday the commodities exchange owner has held preliminary discussions about a potential combination, but there is no guarantee of a deal.

Dubai World, a holding company for the Persian Gulf state, is looking to acquire a 9.5 percent stake in MGM Mirage, and a 50 percent ownership in the company's CityCenter development project, according to the Journal. The casino and resort company is controlled by billionaire investor Kirk Kerkorian.

Dow Jones industrials futures expiring in September rose 93, or 0.43 percent, to 13,210, while S&P 500 futures rose 9.10, or 0.63 percent, to 1,459.80. Nasdaq 100 index futures added 6.25, or 0.33 percent, to 1,926.00.

No economic data is scheduled to be released during the session. But the Commerce Department releases its monthly measure of durable goods orders on Thursday. A report is due Friday on new home sales and prices.

Luxury homebuilder Toll Brothers Inc. reported before the opening bell that third-quarter profit tumbled, hurt by hefty writedowns and higher-than-expected cancellations amid a housing downturn and credit quality concerns. Robert Toll, the company's chairman and chief executive, said the company continues "to wrestle with the interrelated challenges of softer demand and excess housing supply in most markets."

Oil prices rose 24 cents to $69.81 in premarket trading on the New York Mercantile Exchange. Crude prices have fallen as it appeared there was no major damage to oil rigs as Hurricane Dean pushed through Mexico.

Overseas, Britain's FTSE 100 rose 0.87 percent, Germany's DAX index rose 0.63 percent, and France's CAC-40 rose 1.27 percent. In Asia, Japan's Nikkei stock average fell 0.70 point to 15,900.64 points. Hong Kong's Hang Seng Index rose 2.8 percent to 22,346.88.