US STOCKS-Futures edge up ahead of the Fed announcement

* Fed to release statement about 2:15 p.m. EDT (1815 GMT)

* Futures up: S&P 0.9 pt, Dow 12 pts and Nasdaq 0.75 pt

* For a TAKE-A-LOOK on U.S. midterm elections [ID:nUSVOTE]

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

NEW YORK, Nov 3 (BestGrowthStock) – U.S. stock index futures edged
up on Wednesday after Republicans won control of the U.S. House
and strengthened their ranks in the Senate and ahead of an
expected Federal Reserve announcement on monetary easing.

* The Fed statement is due at about 2:15 p.m. EDT (1815
GMT) and is widely expected to give details on the extent and
length of a program of asset purchases of at least $500
billion, effectively printing money to buy bonds and lowering
borrowing costs in a bid to stimulate the economy.

* Futures rose to their highs overnight as voters swept
Democrats from power in the House of Representatives and
increased the ranks of Senate Republicans in an election rout
that dealt a sharp rebuke to U.S. President Barack Obama. But
the gains in futures melted as investors shifted their focus to
the Fed. For details, see [ID:nSGE6A205O]

* The Republican victory was seen as creating a more
business-friendly environment as voters punished Democrats over
high unemployment and a sluggish economic recovery.
[ID:nN03266983]

* S&P 500 futures (SPc1: ) rose 0.9 point and were slightly
above 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: )
gained 12 points, and Nasdaq 100 futures (NDc1: ) rose 0.75
point.

* The S&P 500 index has jumped almost 14 percent since
September, and analysts said the election results had been
priced into the market, leaving stocks ripe for profit-taking.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a graphic on the election results:

http://link.reuters.com/wav53q
For a special report on QE:

http://link.reuters.com/pyb23q

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

* A raft of data due later is expected to offer a reading
on the state of the economic recovery. The ADP Employment
report for October is due at 8:15 a.m. EDT (1215 GMT).
Economists in a Reuters survey expected that 20,000 jobs were
added versus a loss of 39,000 jobs in the previous month.

* U.S. Treasuries extended gains in European trading as
traders anticipated the Fed resuming asset purchases after its
policy meeting. T-note futures (TYv1: ) rose by as much as 8/32
to a one-week high of 126-26/32.

* The U.S. dollar eased 0.1 percent against a basket of
currencies (.DXY: ). The dollar and the S&P 500 have established
a close inverse correlation in recent weeks. Their 30-day
correlation stands at -0.84, with -1 being a perfect inverse
correlation.

* The CBOE Volatility Index (.VIX: ), a favorite barometer of
investor fear, fell 1.2 percent on Tuesday after six sessions
of gains.
(Reporting by Angela Moon; editing by Jeffrey Benkoe)

US STOCKS-Futures edge up ahead of the Fed announcement