* BP permanently seals oil well in Gulf of Mexico
* Federal Reserve decision on monetary policy eyed
* Lennar shrs jump on quarterly results
* Futures up: S&P 5.7 pts, Dow 41 pts, Nasdaq 8 pts
* For up-to-the-minute market news see []
(Adds quote, byline, Lennar results in last paragraph,
updates prices)
By Angela Moon
NEW YORK, Sept 20 (Reuters) - U.S. stock index futures rose
on Monday, looking to extend Wall Street's three weeks of gains
as investors awaited the Federal Reserve's monetary meeting
later in the week.
Futures were supported by a jump in in BP Plc after the
British oil major said it permanently sealed the oil well in
the Gulf of Mexico that had led to the disastrous oil spill.
U.S.-listed shares of BP <BP.N><BP.L> rose 1 percent to $38.40.
For details, see []
The Federal Reserve is expected to tread water at a
policy-setting meeting on Tuesday, with economists looking for
a renewed promise to keep its portfolio from shrinking but no
new steps to ease monetary policy.
The lack of action, however, should not be mistaken for a
lack of debate. Policymakers need to decide if and when to
launch further large-scale asset purchases to support the
sluggish recovery. []
"Whether or not the Fed is going to increase quantitative
easing going forward will be the key in the next day or two,"
said Peter Cardillo, chief market economist at Avalon Partners
in New York.
"The Fed will probably keep its policy on hold, and that
might send a positive message to the market that the economy is
not weakening anymore," he said.
On the M&A front, France's Safran SA <SAF.PA> unveiled a
$1.1 billion deal to buy L-1 Identity Solutions Inc <ID.N> and
its core biometric identity business. Separately, L-1 will sell
its government consulting unit to BAE Systems Plc <BAES.L> for
nearly $300 million. L-1 Identity was up 20 percent at $11.63
in premarket trade. []
Media and entertainment stocks will be eyed after sources
told Reuters Indian conglomerate Sahara India Pariwar was in
talks to buy the debt of struggling film studio
Metro-Goldwyn-Mayer Inc [] for $1.5 billion to $2
billion []
S&P 500 futures <SPc1> rose 5.7 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 41
points, and Nasdaq 100 futures <NDc1> gained 8 points.
Wall Street ended Friday rising for the third straight
week.
Bank of America Corp <BAC.N> plans to test different
pricing packages in a bid to recover some of the $4.3 billion
in revenue it expects to lose from new restrictions on bank and
credit card fees, the Financial Times reported.
China Unicom Ltd <0762.HK> will launch Apple Inc's <AAPL.O>
latest iPhone in China next Saturday, in a bid to claw back
market share with the popular smartphones.
European stocks climbed 0.6 percent in early trade, rising
for the first time in five sessions, led by energy and mining
shares such as BP, Total SA <TOTF.PA> and Rio Tinto Ltd
<RIO.L>.
On the earnings front, investors awaited results from
Discover Financial Services <DFS.N>, while on the macroeconomic
front, the National Association of Home Builders/Wells Fargo
monthly housing market index will be released at 10 a.m.
EDT(1400 GMT). Economists in a Reuters survey expect a reading
of 14 for September versus 13 in August.
Lennar Corp <LEN.N>, the No. 3 U.S. homebuilder, posted a
better-than-expected third-quarter profit as deliveries jumped,
sending its shares up 5.7 percent to $14.78 premarket.
[]
(Reporting by Angela Moon; editing by Jeffrey Benkoe)
