Stock futures point to rebound for Wall St. after selloff

By Leah Schnurr

NEW YORK (Reuters) - Stock futures rose on Wednesday, pointing to a rebound for Wall Street after a selloff in the previous session, though gains may be tempered by investor wariness over how soon central banks will begin to scale back accommodative policies.

The benchmark S&P 500 <.spx> fell 1 percent on Tuesday in volatile trading after Japan's central bank disappointed markets by holding its monetary policy steady.

The lack of further action kindled unease over when the ultra-loose policy put in place by global central banks will be wound down, particularly by the Federal Reserve.

The monetary efforts to boost the economic recovery have been a pillar of the rally in U.S. equities this year, and uncertainty over how soon the measures will be reined in has prompted investors to unwind trades built around such support.

Markets regained some footing on Wednesday, with Treasuries prices edging up, the dollar recovering and European shares rising.

"I think in general the tone is a little more constructive," said Art Hogan, managing director at Lazard Capital Markets in New York.

Some investors are preparing for the possibility the Fed could slow the pace of its $85 billion-a-month bond purchase program by the end of the year, which means the market is likely in for a gradual consolidation, Hogan said.

"My guess is by the time we get the tapering, the market will have discounted that event and it's not going to be something that causes a selloff," said Hogan.

S&P 500 futures rose 9.1 points and were 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 gained 42 points, and Nasdaq 100 futures added 14.5 points.

KFC parent Yum Brands Inc may be in focus after reporting late Tuesday a drop in May sales at established restaurants in China.

U.S. officials will give major banks two years to comply with a controversial Dodd-Frank requirement that they push some swaps trading out of the banks. Shares of Citigroup were up 0.9 percent in premarket trading, while Bank of America added 0.8 percent.

On the economic front, data showing another surge in interest rates last week pushed prospective U.S. homebuyers to act as demand for applications for mortgages rose for the first time in a month.

(Editing by Bernadette Baum)

Source: http://news.yahoo.com/stock-futures-point-rebound-wall-st-selloff-112400970.html

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