U.S. stock futures pointed to a flat market open on Wednesday, as Wall Street looks to pull back from Tuesday's rally and shows caution ahead of the U.S. presidential election. In earnings news, consumer products powerhouse Procter & Gamble Co. reported higher quarterly profit. Boeing Co. , the maker of commercial and military jets, also posted higher third-quarter earnings and raised its profit forecast for 2004. However, Blockbuster Inc. reported a $1.42 billion quarterly loss due to large impairment charges prompted by Viacom Inc.'s spinoff of the business. S&P 500 futures were down 1 point, about even with fair value accounting for dividends, interest rates and time to expiration on the contract.
Dow Jones industrial index futures fell 7 points, while Nasdaq 100 futures were up a half-point. U.S. orders for long-lasting durable goods rose by a smaller-than-expected 0.2 percent in September, held back by another sharp fall in commercial aircraft, government data showed. The report did little to change the direction of stock futures. "Yesterday we had a snap-back rally. But I think the election is the focal point now. People are a little cautious," said Robert Basel, managing director of Citigroup Global Markets. The tight presidential race in the United States and its uncertain outcome next week has hung over the market in the last few weeks. On Tuesday, the Dow Jones industrial average <.DJI> closed 1.42 percent higher, breaking its 5-day streak of losses to score its strongest one-day rally since early June. The Nasdaq Composite <.IXIC> rose 0.77 percent. Battered insurance stocks American International Group Inc. and Marsh & McLennan Cos. helped the rally, on growing hopes that an investigation into the industry would end quickly. Oil prices held above $55 a barrel early on Wednesday as traders braced for the start of the northern winter with thin heating oil supplies.
U.S. light, sweet crude oil hit an all-time high of $55.67 on Monday. Prices have surged 70 percent this year, driven by blistering demand that has pushed global production to its limit. The spike in crude has also fueled worries that rising energy costs will pinch corporate profits. The market will get data on new home sales at 10 a.m. (1400 GMT). Economists polled by estimated that new home sales dipped in September to an annualized rate of 1.150 million from 1.184 million in August. The market will also read the Federal Reserve's latest Beige Book report, an anecdotal report on business conditions across the nation, due at 2 p.m. (1800 GMT).///