* Investors eye Fed's announcement on economy
* Macy Q2 earnings, cash flow give lift
* Futures gain: S&P 1.3 pts, Dow 10 pts, Nasdaq 3 pts
* For up-to-the-minute market news click []
(Adds byline, quote)
By Angela Moon
NEW YORK, Aug 12 (Reuters) - U.S. stock index futures edged
up on Wednesday as investors shied away from big bets ahead of
Federal Reserve statements on the state of the economy.
The Fed's monetary policy committee wraps up its two-day
meeting Wednesday. The central bank is expected to leave the
key target interest rate unchanged, but investors will parse
the Fed's policy comments for any changes in its outlook or its
program to buy Treasury bonds.
"The focus is on what they say about the economy,
quantitative easing, hints that they might change monetary
policies sooner than expected," said Peter Cardillo, chief
market economist at Avalon Partners in New York.
"The market already has taken into account that the economy
is in recovery. Today's announcement will show the strength of
that recovery."
Macy's Inc <M.N> shares gained 1.4 percent to $15.74 before
the bell after the retailer reported second quarter results and
cash flow that exceeded expectations.
Toll Brothers Inc <TOL.N> shares also advanced in premarket
trade, by 7.3 percent to $21.98, after the luxury home builder
said its net signed contracts rose in the third quarter. But
the firm said that it was expecting to report a 42 percent drop
in homebuilding revenue next quarter, a further sign of a
housing market still suffering from recession.
Other stocks pointing to a higher open include Applied
Material Inc <AMAT.O>, which rose 2.1 percent before the bell
to $13.55 after Morgan Stanley raised its price target. Applied
Material, the world's largest producer of chip-making gear,
which reported its quarterly results after the bell on Tuesday,
said it would at least break even this year thanks to new
orders and deep cost cuts.
JPMorgan Chase & Co <JPM.N> is looking to sell 23 office
properties in what may be the country's largest office real
estate sale this year, according to a report by the Wall Street
Journal. The property on offer could raise more than $1
billion. For details, see []
S&P 500 index futures <SPc1> rose 1.3 points and were above
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 <DJc1> added 10
points, while Nasdaq 100 <NDc1> futures gained 3 points.
Asian shares retreated, however, on uncertainty about the
Fed's views. Chinese stocks sank 4.7 percent to their lowest
close in four weeks, while Hong Kong shares slid 3 percent.
Other economic indicators set for release include the
Commerce Department's June international trade at 8:30 a.m.
(1230 GMT). Economists in a Reuters survey forecast a $28.50
billion deficit, compared with a $25.96 billion deficit in
May.
U.S. stocks fell Tuesday after a prominent banking analyst
questioned the sector's recent gains and industry fundamentals.
An unexpectedly large drop in wholesale inventories also raised
worries about a recovery, but the broader S&P 500 is still up
47 percent from its closing-low set on March 9.
(Editing by Padraic Cassidy)
