9:45AM Wall Street opened lower on nervousness ahead of Fed’s decision on rates.

Wall Street opened mixed on Thursday ahead of the Fed Reserve's decision on interest rates. Investors were also digesting a key reading on inflation. Gross domestic product in Q1 was revised to 0.7% from 0.6% previously, while core consumer prices rose at a 2.4% annualized pace in the quarter, revised up from the 2.2% rate previously projected. In another economic report, the Labor Department said that initial jobless claims fell by 13,000 to 313,000 last week.

In corporate news, Bed Bath & Beyond (BBBY: chart) lost 3.2% after the home goods chain cut its full-year profit target, citing uncertain economic trends. semiconductor equipment maker Novellus Systems (NVLS: chart) fell 3.5%after releasing a Q2 profit warning, due to weakness in the chip market.

Among earnings-related movers, Monsanto (MON: chart) added 1.5% after it reported a sharply higher Q3 earnings to $1.03 a share from 60 cents a share a year ago, citing a strong agricultural season. On the deal news front, General Motors (GM: chart) rose 2.2% amid reports that it would sell its Allison Transmission business for $5.6 billion to Carlyle Group and Onex Corp.

In midmorning trading, the Dow Jones industrial average rose 3.41, or 0.03%, to 13,432.36. The Standard & Poor's 500 index rose 1.57, or 0.10%, to 1,507.91, and the Nasdaq composite index rose 8.67, or 0.33%, to 2,614.02. Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 5.09% from 5.08% late Wednesday.


9:30AM The FTSE 100 advances on strong gains by British Land and Liberty International.

The FTSE 100 in London was 39.8 points, or 0.5%, higher at 6,561.5.

Advancers

British Land led the gainers, up 2.4% and another large-cap Liberty International was 2.3% higher. Land Securities also rose 2.1%. Other advancers included Whitbread, the leisure group, which gained 2.6%, while Vodafone surged 2.2% on continued talk of stakebuilding.

Further deal talk also lifted J Sainsbury, up 1% as reports circulate that property owner Robert Tchenguiz had doubled his position in the company to more than 10%

In mid-cap stocks, Domestic & General, a company that sells extended warranties on household appliances, rallied 8.3% after admitting it had received further bid interest.

Newspaper group Trinity Mirror gained 1.4% after it announced that stability rose within its advertising markets.

Decliners

News that adverse currency movements would reduce operating profit at Guinness brewer Diageo by up to 90 million pounds pulled the shares 1.8% lower.

Lender Northern Rock, is still losing ground having warned on profit in the previous session. Northern Rock fell 12% on Wednesday, and now, the mortgage bank, is a further 0.6% lower.


9:00AM Market futures declined ahead of rate decision.

U.S. stock market futures pointed slightly lower, reflecting cautiousness ahead of the Fed Reserve’s interest-rate decision and economic outlook. Rates are expected to remain unchanged at 5.25%. Rising oil futures and a profit warning at Novellus Systems further weighed on the sentiment, helping to offset a broker upgrade of Intel.

Novellus Systems (NVLS: chart) fell 6.7% in pre-open trade after it said it expects Q2 revenue and earnings at the low end of its previous guidance. Intel (INTC: chart) rose 1.4% in pre-open trading after it was upgraded to overweight from equal weight at Lehman Brothers on robust sales forecast. Afain in the tech sector, LSI (LSI: chart) dropped 7% after the company said it expects lower than expected Q2 revenue, leading to 900 job cuts.