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US pre-open: Stocks seen lower ahead of rate decision

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Date: Wednesday 30 Apr 2008

LONDON (ShareCast) - US stocks are expected to start slightly lower as investors wait on the sidelines before the interest rate decision.

The central bank is expected to cut rates by a quarter point to 2% but many will keep an eye out for the Fed's statement, which will give guidance on future rate decisions.

In other economic news, the Commerce Department is expected to announce the US economy grew 0.3% in the first quarter. The Chicago purchasing managers' index is also due out.

Across the markets, the Dow Jones is expected to start down 14 points to 12,812 with the Nasdaq seen 4 points lower at 1934. The S&P 500 is due to start down 2 points.

On the corporate front, a raft of earnings data is out. General Motors reported a loss of $3.3bn in the first quarter but excluding special items, the loss was less than expected.

Software maker SAP AG said its profit slipped in the first quarter but sales were higher, while media firm Time Warner reported lower quarterly earnings that missed estimates.

Consumer products maker Procter & Gamble reported higher quarterly earnings.