Futures Rise as Investors Learn to Live With Tapering

NEW YORK (TheStreet) -- U.S. stock futures pointed to a higher open Thursday as investors begin to accept that the Federal Reserve will move to further taper its monthly bond purchasing program despite mixed economic indicators.

The central bank's determined move forward to reduce monetary stimulus not only quelled uncertainties about the future direction of the Fed's tapering plans, but also helped subdue concerns that emerging market woes will have an impact on the U.S. economy.

United Parcel Service (UPS) and Visa (V) shares were both supporting premarket gains after giving pleasing earnings announcements.

  • S&P 500 futures were up 4.75 points, or 7.65 points above fair value, to 1,776, Dow Jones Industrial Average futures were up 42 points, or 66.21 points above fair value, to 15,740, Nasdaq futures were up 16.8 points, or 31.43 points above fair value, to 3,491.8.

  • U.S. stocks tumbled Wednesday after the Federal Reserve said it will reduce its bond-buying by $10 billion, bringing down the size of the economic stimulus program to $65 billion. The Fed made no references to volatility in the emerging markets as it announced its decision.

  • Visa was popping 3.17% to $224 after the global payments company beat fourth-quarter expectations by four cents at $2.20 a share on stronger than expected revenue.

  • Exxon Mobil (XOM) was off 0.74% to $94.41 after the oil major reported a 16% decline in fourth-quarter earnings to $8.35 billion, or $1.91 a share, missing estimates by a penny.

  • 3M (MMM) was down 0.19% to $130 after reporting in-line earnings of $1.62 a share on sales that were a touch below forecasts.

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