05.08.2008 17:21

Before the bell:

Futures (S&P futures vs fair value: +8.3. Nasdaq futures vs fair value: +15.2.) point to a higher open ahead of the FOMC policy announcement at 18:15 GMT.

The Fed is expected to leave the fed funds rate unchanged at 2.00% (fed funds futures imply a 93% probability rates will remain unchanged). Giving futures a boost this morning is a 2.0% drop in crude prices. In addition, European stock markets are rallying thanks to strength in financial names following better-than-expected results from Societe Generale. In earnings news, Procter & Gamble (PG) topped its expectations.

Investors will be looking for any clues the policymakers offer about where rates are headed next.
Oil prices extended their slide, as crude futures for September delivery tumbled $2.56 to $118.85 in electronic trading.
Oil prices have fallen sharply in recent weeks on worries that high prices are starting to cut into demand.

Earnings: Consumer products maker Procter & Gamble reported higher fiscal fourth-quarter profit and revenue that beat analyst expectations. The company announced that profit jumped 33% to $3.02 billion, or 92 cents per share.
Cisco Systems and News Corp. are slated to release results after the market close.