Before the bell: Investors unsure before the Fed; Stock futures lower

U.S. stock futures were lower this morning, indicating a lower start for U.S. stocks ahead of the Federal Reserve's policy meeting and as investors grow more concerned about the Fed's decision and worry it may not deliver the much anticipated rate cut businesses wish for.

Yesterday, U.S. stocks continued their advance heading into the Fed's next rate decision. The Dow industrials rose 63 points, or 0.46%, the Nasdaq Composite added 13 points, or 0.47%, and the S&P 500 rose 5 points, or 0.37%.

Not much economic data is due out today except for October consumer confidence to be released at 10 a.m. EDT.
Oil prices dropped to below $93 a barrel today from the record set overnight as the disruption of a fifth of the oil production by Mexico's state oil company is now seen as only temporary.

What will be at the center of attention the next two days is the Fed's two day policy meeting starting today. Policy makers will discuss interest rates and the economic outlook and will announce their decision tomorrow. While many in the market expect the central bank to lower rates by a quarter- to half a percentage point, the Wall Street Journal reported that the Fed is considering [subscription] a quarter-point rate and no cut at all.

The dollar continued to decline and hit a 26-year low against the British pound as the Bank of England keeps interest rates at a six-year high, while the Fed may cut rates tomorrow. The dollar's weakness may be a consideration in the Fed's decision. Other considerations would no doubt be problems in the mortgage markets and the slump in the housing market. The S&P releases its August Case-Schiller home price index this morning. Yet another consideration would be possible financial markets turmoil and the risks involved that could lead to a recession as some economists say. The debt crisis is far from over according to them.

Overseas, Asian markets closed mostly lower, but Hong Kong and Shanghai gained. European markets were also lower.

Reporting today are Dow component Procter & Gamble (NYSE: PG), as well as Liz Claiborne (NYSE: LIZ) and Goodyear Tire (NYSE: GT).

Update: Procter & Gamble (NYSE: PG) reported that first-quarter profit rose 14% on strong sales growth across nearly all regions. Sales rose 8% to $20.2 billion. Excluding a German tax benefit of 2 cents per share, the company earned 90 cents per share in the latest period. Analysts were expecting a profit of 89 cents per share on revenue of $20.23 billion.

The Wall Street Journal reported Google (NASDAQ: GOOG) plans to unveil within the next two weeks a proposal to finally bring the Google-powered cell phones to market by the middle of 2008.