NEW YORK (Reuters) � Stock index futures were flat on Tuesday ahead of expectations of a Federal Reserve debate over whether to expand its monetary easing policy at a meeting later in the day.
The Fed is expected to tread water, with a renewed promise to keep its portfolio from shrinking but no new steps to ease its monetary policy. The central bank acknowledged in August the U.S. recovery had lost momentum and Fed Chairman Ben Bernanke said the Fed would renew efforts to stimulate growth if the outlook soured appreciably.
Economic data on tap includes August housing starts at 8:30 a.m. EDT. Economists expect a modest gain to an annualized pace of 550,000 units from 546,000 units in the previous month. The report will give investors a better idea of whether or not the housing market can stand on its own feet after months of government support.
S&P 500 futures were down 0.9 points and slightly below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dipped 6 points, and Nasdaq 100 futures fell 0.75 points.
Banking stocks will be in view after a source told Reuters that Bank of America Corp (BAC.N) is laying off about 5 percent of its investment banking staff and will inform employees this week.
Global airlines are likely to post sharply higher 2010 profits than previously forecast as the industry rebounds from economic recession, the International Air Travel Association said.
Nokia (NOK1V.HE)(NOK.N), the world's top cellphone maker, decided for the second time to delay the launch of its N8 smartphone, which is intended to challenge Apple Inc's (AAPL.O) iPhone.
Real estate investment trust Home Properties Inc (HME.N) raised its outlook for third-quarter funds from operations.
Barnes & Noble Inc (BKS.N) failed to win the support of an influential shareholder advisory firm but got the backing of another in its fight with billionaire investor Ron Burkle over the future of the nation's largest bookseller.
European shares rose 0.2 percent in morning trade, supported by mining stocks as investors awaited a Federal Reserve statement.
(Reporting by Angela Moon; editing by Jeffrey Benkoe)
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