U.S. stock futures were higher this morning, indicating a possible higher start on Wall Street ahead of the Federal Reserve's decision on interest rates to be announced at 2:15 p.m. EDT. Investors expect the Fed to cut rates for the second consecutive month to help reduce the risks arising from the problems in the credit and housing markets.

Yesterday, U.S. stocks ended lower with the Dow industrials down 77 points or 0.56%, the S&P 500 nearly 10 points or 0.65%, and the Nasdaq Composite ending nearly flat, down 0.03%. Jittery investors digested some disappointing earnings results and economic data, became concerned about today's Fed move.

By and large, Wall Street expects a quarter-point rate cut. Despite soaring oil prices, which may affect inflation, the central bank may be more concerned about the effects tighter credit conditions and a housing slump would have on economic growth. Lowering rates stimulates economic activity and some even expect half a percentage point rate cut as the danger of a recession looms.

As investors analyze the Fed's statement issued with the decision, markets will react. If the Fed doesn't move, markets may slump heavily. A quarter of a percentage point rate cut may not move them much and half a point could boost stocks. If the statement indicates further future cuts being a possibility, Wall Street will react positively.

But today isn't all about the Fed and before the policy statement many economic reports are due.

• At 8:30 a.m. EDT, advanced numbers for third quarter GDP are due. Expectations is for a 3.1% economic growth in the quarter, slower than the 3.8% in the last quarter. Still, and especially considering the several challenges facing the economy, this is a healthy rate of growth. Fourth quarter is expected to be far worse.
• The chain deflator, a key inflation measure, comes out with the report and is expected rise 2% in the Q3, less than the 2.6% in Q2.
• Also at 8:30, the Labor Department's Employment Cost Index, another inflation indicator, is due. It is forecast to have risen 0.9% in the third quarter, the same pace as in the second quarter.
• Just after the market opens, construction spending and the Chicago PMI, a regional manufacturing survey, are due.
• Finally, at 10:30 a.m., weekly fuel inventory report will be released. After setting record prices Monday, oil prices were lower yesterday and again retreated to below $90 a barrel today.
  

Overseas, Asian stocks were mixed, with the Bank of Japan leaving rates unchanged. European stocks were lower but have recovered and are now trading higher despite a report that European inflation accelerated more than economists forecast in October.

Reporting today are: MasterCard Inc. (NYSE: MA) and Kraft Foods Inc. (NYSE: KFT).

Also in the news is Alcatel-Lucent (NYSE: ALU), which will cut a further 4,000 jobs and Chief Financial Officer Jean-Pascal Beaufret will resign. ALU shares are gaining over 2.5% in premarket trading.

Meanwhile, the Google (NASDAQ: GOOG) phone is making more and more waves with he Wall Street Journal now reporting of three telcos -- Sprint (NYSE: S), Verizon (NYSE: VZ) and Vodafone (NYSE: VOD) -- in advanced talks with the search giant regarding selling the Google powered cellphones.