* Fed's two-day meeting kicks off on Tuesday
* Traders see 94 pct chance of rate hike after Fed meeting
* Mobileye jumps on $15.3 bln Intel deal
* Futures: Dow up 10 pts, S&P up 0.75 pts, Nasdaq down 0.75
(Adds details, comments, updates prices)
By Yashaswini Swamynathan
March 13 U.S. stock index futures pointed to a
subdued open on Wall Street as investors bided time ahead of an
all-but-certain interest rate hike by the Federal Reserve.
The Federal Open Market Committee, the central bank's
policy-setting board, is expected to lift interest rates by a
quarter point to 0.75 percent-1.00 percent after a two-day
meeting that starts on Tuesday.
A blowout monthly jobs number on Friday underscored the
strength of the U.S. labor market and the ability of the economy
to absorb a rate hike.
Traders have placed a 94 percent bet that Fed Chair Janet
Yellen will announce an increase on Wednesday.
Investors will closely watch Yellen's comments for clues on
whether the central bank could get more aggressive on rates as
the economy shows signs of improvement.
"Right now the markets appears to be in a wait-and-see phase
ahead of the Fed decision," said Andre Bakhos, managing director
at Janlyn Capital in Bernardsville, New Jersey.
Dow e-minis were up 10 points, or 0.05 percent at
8:30 a.m. ET (1330 GMT), with 5,538 contracts changing hands.
S&P 500 e-minis were up 0.75 points, or 0.03 percent,
with 101,937 contracts traded.
Nasdaq 100 e-minis were down 0.75 points, or 0.01
percent, on volume of 6,491 contracts.
The dollar, which tends to strengthen as rates climb, was up
for the first time in three days, but prices of safe-haven gold
also rose due to uncertainty ahead of elections in Europe.
Wall Street ended higher on Friday, but the S&P 500 and the
Nasdaq snapped a six-week winning streak as worries about
valuations and the lack of detail on President Donald Trump's
policy proposals threw a wrinkle in a post-election rally.
"We're at a point where no one wants to walk into the dark
room first. Even though a rate hike is a known factor, there is
still some uncertainty as to whether the economy is going to do
what the market has been betting on," Bakhos said.
Oil prices could keep the market under pressure on Monday,
as U.S. crude hit a more than three-month low of $48.31 on
Shares of Mobileye jumped 31.3 percent to $62.06 in
heavy premarket trading after chipmaker Intel agreed to
buy the driverless technology maker for about $15.3 billion.
Intel's shares were down 1.6 percent.
Nutritional supplements maker Herbalife rose 3.2
percent to $53.95 after Carl Icahn raised its stake to 24.57
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by