US STOCKS-Media, telecom shares lift futures; Fed awaited

Reuters

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    * AT&T most traded premarket after ruling
    * U.S. producer prices rise more than expected in May
    * H&R Block tumbles on lowered EBITDA forecast 
    * Futures up: Dow 0.13 pct, S&P 0.13 pct, Nasdaq 0.21 pct 

 (Adds comment, details, updates prices)
    By Sruthi Shankar
    June 13 (Reuters) - A court approval for AT&T's $85 billion
takeover of Time Warner lifted media and telecom shares on
Wednesday and nudged up U.S. stock futures ahead of the Federal
Reserve's policy announcement.
    Time Warner  TWX.N  jumped 4.1 percent in premarket trading
after the landmark ruling, which is expected to trigger a wave
of corporate mergers. AT&T  T.N  dropped 3.7 percent in busy
trade before the opening bell.  urn:newsml:reuters.com:*:nL1N1TE25F
    Twenty-First Century Fox  FOXA.O  surged 7.6 percent as
Comcast Corp  CMCSA.O  is expected to outbid Disney  DIS.N  for
some of its assets as early as Wednesday. Sprint  S.N , which is
looking to merge with T-Mobile  TMUS.O , was also up 2.6
percent.
    "(The ruling) sounds like it opened the door for
consolidation, which should excite investors in that space,"
said Jack Ablin, chief investment officer at Cresset Wealth
Advisors in Chicago.
    At 8:40 a.m. ET, Dow e-minis  1YMc1  were up 33 points, or
0.13 percent. S&P 500 e-minis  ESc1  were up 3.75 points, or
0.13 percent and Nasdaq 100 e-minis  NQc1  were up 15.25 points,
or 0.21 percent.
    Investors are awaiting the Fed's decision on monetary policy
at 2:00 p.m. ET. With this year's second interest rate hike
almost certain, market participants will look for signals on
whether the Fed will move to raise rates three or four times
this year.
    "Market pricing is fairly split between three and four hikes
this year, so it probably doesn't require a hawkish signal to
correct a mispricing," Deutsche Bank strategist Jim Reid wrote
in a note to clients.
    Investors are focused on how the Fed characterizes its
monetary policy as borrowing costs return to more normal levels
amid an ongoing economic expansion. Fed Chair Jerome Powell
holds a news conference after the decision.  urn:newsml:reuters.com:*:nL1N1TD1NR
    A Labor Department report on Wednesday showed U.S. producer
prices increased more than expected in May, leading to the
biggest annual increase in nearly 6-1/2 years, but underlying
producer inflation remained moderate.  urn:newsml:reuters.com:*:nLNSDHEEEN
    Among others, Netflix  NFLX.O  rose 0.5 percent after
Goldman Sachs forecast that 2018 would be the peak negative-free
cash flow year for the company.  urn:newsml:reuters.com:*:nFWN1TF09I 
    H&R Block  HRB.N  tumbled 19.3 percent after the tax
preparation service provider projected lower EBITDA margins for
2019.  urn:newsml:reuters.com:*:nL1N1TE2GG

 (Reporting by Sruthi Shankar in Bengaluru; Editing by Anil
D'Silva)
 ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6749 6328; Reuters Messaging:
sruthi.shankar.reuters.com@reuters.net))

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