Futures lower before Fed report

U.S. equity futures are pointing to a slightly lower open ahead of the Federal Reserve's policy announcement this afternoon.

S&P 500 futures are off 0.15 percent, while Nasdaq 100 futures are lower by about 0.3 percent with pressure from Facebook. In Europe, Germany's DAX and the U.K. FTSE are rising 0.7 percent, while France's CAC is up 0.25 percent. Brazil's Bovespa is opening about 0.8 lower as that country continues to assess the reelection of its president.

Asian bourses rallied overnight. Japan's Nikkei and China's Shanghai posted gains of 1.5 percent, while Hong Kong's Hang Seng was up almost 1.3 percent. South Korea's KOSPI closed even higher, at 1.84 percent.

The major U.S. indexes have erased all of the mid-October losses and are up on the month, something that could hardly have been imagined only two weeks ago. The Nasdaq 100 posted a new 13-year closing high yesterday, but perhaps more impressive was the Russell 2000.

The small-cap index gained 2.86 percent, far outperforming its peers, and closed above its 50-day moving average for the first time since Sept. 18. The bears have argued for months that the RUT must catch up to the other indexes before the market can reach new highs.

The transportation, financial, and energy sectors were all strong yesterday. Some of the most beaten-down industries were among the best-performing groups in the session, including metallurgical coal, iron ore, network security, and shipping companies, according to our proprietaryresearchLAB market scanner. Energy groups were also near the top of the list, including wildcat oil producers, fracking companies, and ocean drillers. Department stores and hospital operators led the underperformers.

Attention now turns to the Fed's statement at 2 p.m. ET. The central bank is scheduled to end its bond-purchasing program, and traders will be watching closely for any indication that interest rates will rise. 

The deluge of earnings reports continues as well, with some large pre-market moves. Facebook is down about 8 percent on concerns about spending and user growth. U.S. Steel is gaining 8 percent after beating expectations. Gilead is off 3 percent with lower sales of its Hepatitis C drug Sovaldi. 

Motion-sensor maker InvenSense is plunging 20 percent after earnings missed estimates last night. STMicroelectronics is falling 10 percent after warning that revenues will fall. Hershey is off 4 percent with lowered guidance. Electronic Arts is up 3 percent after raising its outlook. Sodastream is down 3 percent after warning of weak revenues. 

Other names reporting this morning include Goodyear Tire & Rubber, SunPower, Ralph Lauren, Eaton, and Hess. Visa, Akamai Technologies, Baidu, Avis Budget, Kraft Foods, MetLife, and RF Micro Devices will announce results after today's close.

In commodities, crude oil is up 0.52 percent to $81.42, remaining above the key $80 level. Trading could be affected by the weekly inventory announcement at 10:30 a.m. ET. 

Gold and silver are up slightly, while copper is flat. The safe-haven Japanese yen is lower in currency exchanges, which is usually bullish for equities.