26 April 2006, 17:49  U.S. stocks to open flat to higher

U.S. stock futures are pointing to a flat-to-higher open Wednesday as concern over rising interest rates fueled by stronger-than-expected durable good data tempered the positive impact of another round of solid earnings reports and a broker upgrade of General Motors Corp. Dow futures rose 7 points to 11,340, Nasdaq 100 futures dipped 0.50 point to 1,714 while S&P 500 futures ticked up 0.40 point at 1,309.80. Futures "took a little bit of a hit after the data," John Hughes, managing director at Epiphany Equity Research. "There is some continued concern about interest rates, inflationary pressures and whether the expectations of the Fed being one and done again is in jeopardy now." The Federal Reserve has raised short-term interest rates fifteen times in a row to 4.75%. The Federal Open Market Committee, the Fed's interest-rate setting body, is widely expected to raise the fed funds rate by another quarter percentage point at its May meeting. On Tuesday, stocks ended lower, after worries about the interest rate outlook, sparked by unexpectedly brisk data, overshadowed a drop in crude-oil prices and solid earnings releases from AT&T, Yum Brands and JetBlue Airways among others. The Dow Jones Industrial Average fell 53 points to 11,283.

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