CORRECTED – US STOCKS-Index futures flat as investors cautious

(Corrects in first paragraph to weaker commodity prices)

* Weekly jobless claims on tap due to Thursday holiday

* Futures: S&P off 0.3 pt, Dow up 4, Nasdaq off 0.25 pt

* For up-to-the-minute market news see [STXNEWS/US]

By Edward Krudy

NEW YORK, Nov 10 (BestGrowthStock) – U.S. stock index futures were
little changed on Wednesday as investors chewed over the
Federal Reserve’s asset purchases and European sovereign debt
worries, while a stronger dollar and weaker commodity prices
weighed on world markets.

* Equities have stalled this week after a two-month run-up
in stock prices before the Fed’s decision to purchase $600
billion in Treasury debt in a bid to spur a sluggish economy.
Since the end of August the S&P 500 has advanced 16 percent.

* With the Fed’s move and midterm elections in the rearview
mirror, investors have been left trying to assess the wider
impact of the so-called quantitative easing, while revisiting
old concerns about European debt and the economy.

* Rick Meckler, president of investment firm LibertyView
Capital Management in New York, said investors were struggling
to understand the Fed’s action and even seeing it as a “shell
game.”

* “You have a government that is deeply in debt, using a
governmental arm to buy back debt in the marketplace,” he said.
“It’s something that is not easily understood by investors,
particularly international investors.”

* European stocks fell slightly in morning trade, tracking
losses in commodity prices that were sparked by weak Chinese
imports data and strength in the U.S. dollar. The combination
has been a strong headwind for U.S. stocks (Read more about the stock market today. ) in the absence of
other catalysts. For details, see [ID:nTOE6A903Y]

* The dollar rose 0.5 percent against a basket of major
currencies (.DXY: ) to hit its highest levels since late October
as the euro extended losses over worries about euro zone
sovereign debt.

* S&P 500 futures (SPc1: ) declined 0.3 point and below 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: ) rose 4
points, and Nasdaq 100 futures (NDc1: ) dipped 0.25 point.

* Oil fell for a second day in a row as a result of a
dollar rally, reining in the bullish effect of a surprise drop
in U.S. inventories. [ID:nLDE6A90F4]

* Weekly jobless claims were due Wednesday morning, coming
a day early because of the U.S. Veterans Day holiday. Initial
jobless claims are expected to have fallen to 450,000 in the
previous week, economists predicted.

* The U.S. stock markets are open on Thursday.

* China’s central bank also rattled investors by ordering
banks to boost reserve requirements by 0.5 of a percentage
point in an apparent move to curb rapid credit growth, three
sources told Reuters. [ID:nSGE6A9091]

* In a letter obtained by Reuters, U.S. President Barack
Obama told the G20 summit in Seoul that a strong economy is the
most important contribution the United States can make to the
global recovery. Leaders at the summit are struggling to cool
global currency tensions. [ID:nASF000057]

* On the earnings front, Cisco Systems Inc (CSCO.O: ), Macy’s
Inc (M.N: ) and Polo Ralph Lauren Corp (RL.N: ) are due to report
quarterly results.

* Wall Street fell for a second day on Tuesday as selling
accelerated into the close, led by sharp losses in bank and
metal stocks.
(Reporting by Edward Krudy; editing by Jeffrey Benkoe)

CORRECTED – US STOCKS-Index futures flat as investors cautious