* Bank of Japan to pump more funds into economy
* Oil futures, gold rise
* ISM services index on tap
* Futures up: Dow 18 pts, S&P 2.7 pts, Nasdaq 6.5 pts
* For up-to-the-minute market news see []
(Adds quote)
By Ryan Vlastelica
NEW YORK, Oct 5 (Reuters) - U.S. stock index futures rose
on Tuesday as global stimulative measures reassured investors
that governments were taking protective steps against economic
weakness.
The Bank of Japan will pump more funds into the struggling
economy and keep rates close to zero, while Australia's central
bank also kept rates low, in moves that surprised investors.
The Nikkei jumped 1.5 percent on the fresh dose of stimulus,
leading the way for U.S. market gains. For details, see
[] and []
"We're in a slow and uneven recovery, and it's good to know
that governments are going to use their bullets to help prevent
a double-dip recession," said Cort Gwon, director of trading
strategies and research at FBN Securities in New York.
In a sign of continued struggles for Europe, Moody's may
cut Ireland's credit rating again, pointing to the huge bill
for cleaning up its banks, a weak recovery and rising borrowing
costs. []
"I expect the Bank of England to do a similar move as the
Bank of Japan, sooner rather than later, and that will have
another positive impact on us in the near term," Gwon said.
U.S. Federal Reserve Chairman Ben Bernanke said the Fed's
asset purchases lowered borrowing costs and helped the economy,
and that more buying could further ease conditions. The Fed
bought $1.7 trillion in mortgage-related and Treasury bonds
after cutting benchmark rates to near zero to combat the
financial crisis and help the economy pull out of a severe
recession. []
S&P 500 futures <SPc1> rose 2.7 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 18
points and Nasdaq 100 futures <NDc1> rose 6.5 points.
Investors looked ahead to September's Institute for Supply
Management's non-manufacturing index, which is expected to be
largely unchanged from the prior month but still in
expansionary territory. The business activity expectation is
54.0, compared with 54.4 last month. The PMI figure is seen at
52.0, up from 51.5 last month. Anything above 50 represents
expansion.
The services sector makes up the bulk of the economy, and
traders hope for signs of strength a week after the ISM's
manufacturing index showed the sector slowed in September.
[]
Oil futures rose 0.5 percent and neared its highest price
since Aug. 6 after Japan lowered rates, which weakened the
dollar. Gold hit a record high above $1,326 an ounce.
[]
Fast food chain operator Yum Brands Inc <YUM.N> is on tap
to report third-quarter results. The earnings season
unofficially kicks off later this week with Alcoa Inc's <AA.N>
results after the market close on Thursday.
Chevron Corp <CVX.N> plans to resume quarterly stock
buybacks of up to $1 billion as the No. 2 U.S. oil group gains
confidence about its finances. Shares of the Dow component rose
0.9 percent to $82.08 in light premarket trading.
[]
U.S. stocks fell Monday as investors used mixed economic
data and worries about euro zone debt as a catalyst to shed
long positions.
(Editing by Jeffrey Benkoe)
