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U.S. Stock-Index Futures Little Changed Before Federal Reserve

June 18 (Bloomberg) -- U.S. stock-index futures were little changed, following a three-day gain for the Standard & Poor’s 500 Index, as investors awaited the latest monetary-policy decision from the Federal Reserve.

FedEx Corp. advanced 4.1 percent as fiscal fourth-quarter earnings topped forecasts. Adobe Systems Inc. jumped 9.3 percent after posting quarterly revenue and profit that beat analysts’ estimates. Cisco Systems Inc. climbed 1.4 percent after Morgan Stanley recommended buying shares in the world’s largest networking-equipment maker.

Futures on the S&P 500 expiring in September added less than 0.1 percent to 1,934.4 at 7:44 a.m. in New York. Dow Jones Industrial Average contracts climbed 5 points, or less than 0.1 percent, to 16,734.

“A big theme right now is speculation about interest rates,” said Andreas Lipkow, a senior market strategist at Kliegel & Hafner AG in Berlin. “There may be a difference between the market’s expectations and what Fed officials will do. My guess is that the Fed could be more hawkish than the market is thinking. We could see some volatility.”

Fed officials led by Janet Yellen will release a new set of quarterly predictions for unemployment, inflation, economic growth and the benchmark federal funds rate today. In March, policy makers estimated that the interest rate, now close to zero, would rise to 1 percent at the end of 2015 and to 2.25 percent a year later.

U.S. interest rates will climb faster than money-market investors expect, economists surveyed by Bloomberg News June 12-16 predicted. A report yesterday showed inflation quickened in May by the most in more than a year.

Bond Purchases

The Federal Open Market Committee will reduce its monthly asset purchases by $10 billion to $35 billion when it announces the outcome of its meeting at 2 p.m. in Washington, according to the median estimate compiled by Bloomberg. Some 62 percent of economists surveyed by Bloomberg News forecast that the Fed will agree to stop bond purchases at the October meeting.

U.S. stocks have climbed for the last three trading days as corporate deals and growth in manufacturing outweighed a crisis in Iraq. The S&P 500 dropped 0.7 percent last week as Sunni insurgents swept through northern Iraq, causing the price of Brent crude to jump the most in 11 months.

FedEx jumped 4.1 percent to $146. The operator of the world’s largest cargo airline posted fiscal fourth-quarter earnings of $2.46 a share, topping analyst forecasts of $2.36.

Adobe rallied 9.3 percent to $73.80. Sales rose to $1.07 billion and profit excluding certain items reached 37 cents a share in the three months through May. That exceeded analyst estimates for sales of $1.03 billion and earnings of 30 cents. The software maker attracted online subscribers at a faster- than-projected rate, returning the company to revenue growth for the first time in six quarters.

Cisco added 1.4 percent to $24.85. Morgan Stanley rated the San Jose, California-based company with an overweight recommendation and forecast the shares will climb to $30.

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