US STOCKS-Futures gain as Fed policy-makers gather

                                
 (Updates prices, adds Dow Chemical, Lexmark, 3M results)
                                
 By Caroline Valetkevitch
                                
 NEW YORK, Jan 29 (Reuters) - U.S. stock index futures rose
on Tuesday as investors looked forward to another interest rate
cut from the Federal Reserve this week to help cure the
economy's ills.
                                
 Earnings from companies, including Dow Chemical Co <DOW.N>,
helped boost sentiment.
                                
 Shares of Dow Chemical were up 1.7 percent at $38.25 before
the opening bell as it reported earnings above expectations.
For details, see [ID:nN29163730] Shares of printer maker
Lexmark International Inc <LXK.N> gained 12.4 percent at $33
before the bell after it reported results.
                                
 The Fed's policy-setting Open Market Committee was set to
begin a two-day meeting on Tuesday, which investors expect to
conclude on Wednesday with a rate cut to counter the economy's
apparent slide toward recession.
                                
 S&P 500 futures <SPc1> were up 5.10 points, above fair
value, a mathematical formula that evaluates pricing by taking
into account interest rates, dividends and time to expiration
on the contract.
                                
 Dow Jones industrial average futures <DJc1> were up 23
points. Nasdaq 100 <NDc1> futures were up 3.50 points.
                                
 Stocks in Europe and Asia also were higher.
                                
 If U.S. stocks advance during regular trading on Tuesday,
the market would buck its recent trend. Benchmark indexes have
tumbled more than 1 percent each Tuesday so far this year.
                                
 In an emergency move last Tuesday, the Fed cut interest
rates 75 basis points after a sharp weekend sell-off in global
equities.
                                
 "There's more and more focus looking ahead to what these
rate cuts might produce down the road, and that's giving a
fairly positive tone to the market," said Rick Meckler,
president of investment firm LibertyView Capital Management in
Jersey City, New Jersey.
                                
 Shares of financials and retailers could rise on the cuts,
he said.
                                
 In other earnings news, manufacturer 3M Co <MMM.N> reported
a fall in quarterly earnings.
                                
 After Monday's market close, American Express Co <AXP.N>
posted a 10 percent drop in fourth-quarter profit and its
revenue missed forecasts, sending the credit card company's
stock down more than 3 percent from a NYSE close of $47.40. For
details, see [ID:nN28505112]. The stock rose in Europe,
however.
                                
 Economic reports will include durable goods orders for
December due at 8:30 a.m. (1330 GMT) and consumer confidence
data for January due at 10 a.m. (1500 GMT).
                                
 In other earnings news, shares of VMware Inc <VMW.N>, the
leading maker of virtualization software, reported quarterly
revenues that fell short of Wall Street estimates after the
bell, sending its shares plunging more than 23 percent from an
NYSE close of $83. [ID:nN28493424]
                                
 On Monday, U.S. stocks surged as investors snapped up
shares of manufacturers and downtrodden banks amid expectations
the Federal Reserve will slash rates this week.
 (Editing by Kenneth Barry)