US STOCKS-Wall St set for modest rebound; mood cautious on Fed, Apple

Reuters - UK Focus

* U.S. durable goods orders unexpectedly plunge in December

* Apple (NasdaqGS: AAPL - news) shares to open lower after muted iPhone sales,outlook

* Federal Reserve to begin two-day policy meeting

* Futures: Dow up 59 pts, S&P up 3.4 pts, Nasdaq down 21.75pts

By Angela Moon

NEW YORK (Frankfurt: HX6.F - news) , Jan 28 (Reuters) - Wall Street was set for amodest rebound on Tuesday after a three-session decline on theS&P 500, but market sentiment was weighed down by an unexpecteddrop in durable good orders in December and disappointing iPhonesales at tech giant Apple.

* Investors were cautious as the Fed was set to begin itstwo-day policy meeting. Concerns have been growing about morewithdrawal of U.S. monetary stimulus and slowing Chinese growth,which amplified country-specific political turmoil from Turkeyto Thailand.

* S&P 500 index futures trimmed gains following data thatshowed durable goods orders unexpectedly plunged in December,falling 4.3 percent compared to consensus of 1.8 percentincrease.

* Technology stocks were set for a lower open followingquarterly results from Apple Inc. The stock was set toopen 7 percent lower after iPhone sales in the holiday shoppingseason missed lofty expectations and the company forecast weakrevenue for the current quarter.

* At least 12 brokerages lowered their price targets onApple's shares, reflecting concerns that it was becoming harderto sell high-end phones as markets become saturated. The stockhad gained a quarter of its value in the last six months.

* In other earnings, Pfizer Inc (NYSE: PFE - news) reportedbetter-than-expected fourth-quarter results, helped by sales ofnew treatments for cancer, nerve pain and arthritis, sendingshares 3 percent higher in premarket trading.

* Hedge fund Casablanca Capital LP took a 5.2 percent stakein Cliffs Natural Resources Inc (NYSE: CLF - news) and urged the iron oreproducer to spin off international assets and double its annualdividend. The stock rose 11 percent premarket.

* The S&P/Case-Shiller home price index for November will bereleased at 9:00 a.m. ET and the Conference Board's consumerconfidence index for January is due at 10:00 a.m. ET.

* Investors were also focused on whether the central bank ofTurkey would bow to market pressure and hike interest rates atan emergency policy meeting to defend its battered lira. Indiasurprised markets earlier by doing just that.

* Despite reluctance to unsettle Turkish voters ahead ofelections this year, a new Reuters poll showed analysts nowexpect the central bank to lift rates by 225 basis points.

* S&P 500 e-mini futures rose 3.4 points and wereslightly above fair value, a formula that evaluates pricing bytaking into account interest rates, dividends and time toexpiration on the contract. Dow Jones industrial average futures rose 59 points and Nasdaq 100 futures lost 21.75points.

* Monday's decline on Wall Street, which picked up late inthe session after the S&P 500 briefly traded in positiveterritory, followed a steep selloff late last week tied toemerging market concerns. The slide gave the S&P 500 its worstweekly percentage loss since June 2012.

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