US STOCKS-Wall St set to rally at open on Summers' exit from Fed race

Mon Sep 16, 2013 9:16am EDT
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* Obama accepts Summers' withdrawal from Fed chair consideration

* Major U.S. stock indexes set to jump about 1 percent at open

* NY factory growth slows a bit in Sept -NY Fed

* Futures up: S&P 16.5 pts; Dow 167 pts; Nasdaq 25.3 pts

By Angela Moon

NEW YORK, Sept 16 (Reuters) - Wall Street was set to rise 1 percent at the open on Monday as investor bets that the former Treasury Secretary Lawrence Summers' withdrawal as a candidate for Federal Reserve chairman could mean slower tapering of stimulus by the Fed.

Summers' surprise decision on Sunday came two days before the U.S. central bank will meet to decide when and by how much to scale back its bond purchases from the current pace of $85 billion a month.

S&P 500 futures rose 16.5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 167 points, and Nasdaq 100 futures added 25.3 points.

"Stock index futures have reached a record high - although the cash market still has some work to do - as investors warm to a late Summers rally," said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co in New York.   Continued...