Futures are rallying ahead of the Fed

The energy sector was leading the S&P 500 after the opening bell, up 2.26%.

The U.S. Federal Reserve begins a two-day policy meeting later in the day to decide on rates, with a statement scheduled for Wednesday.

Exxon powered the S&P 500 with a 4.4 percent rise, while Chevron rose 4 percent after crude prices recovered from their steep fall on Monday.

The Dow Jones Industrial Average climbed 0.9 per cent to 17,525.

The materials index was also down 1.62 per cent, weighed down by DuPont and Dow. The Stoxx Europe 600 rose 2.9%, Germany’s DAX 30 jumped 3.1%. Jarden stock inched up 48 cents to $53.16.

Other markets: European stocks (http://www.marketwatch.com/story/european-stocks-eye-first-win-in-six-days-as-oil-shares-find-relief-2015-12-15) closed higher, (http://www.marketwatch.com/story/european-stocks-eye-first-win-in-six-days-as-oil-shares-find-relief-2015-12-15) snapping a five-session losing streak. Coal producers Consol Energy (NYSE: CNX – news) and Peabody Energy (Berlin: 29763433.BE – news) lost 3.7 percent and 13.2 percent, respectively.

An increase by the price of crude oil has also generated buying interest, with crude for January delivery climbing USD0.65 to USD36.96 a barrel. Newell sank 10 percent.

“Successes are more likely to be those companies that have the right products at the right prices…rather than a broad euphoric relief”, Jack Caffrey, equity portfolio manager at J.P. Morgan Private Bank, said.

ASIA’S DAY: Japan’s Nikkei 225 stock index fell 1.7 percent to 18,565.90 as the yen rose against the USA dollar.

US stocks are pointing higher in trading before the opening bell as the price of crude oil stabilizes for a second day and Wall Street awaits the Federal Reserve’s decision Wednesday on interest rate hikes and eyes on the ongoing turmoil in the riskier corner of the corporate bond market. GAS LEAK: Natural gas prices plunged to the lowest level since September 2001 as traders anticipated weak demand for heating because of unseasonably warm temperatures in the U.S. Natural gas companies fell sharply. Waddell & Reed Financial shares fell 7.5% and shares in Franklin Resources, operator of the United States mutual fund with the most junk bonds, lost 2.9%.

Dow Chemical (Hanover: DCH1.HA – news) dropped 3.9 percent on news activist Daniel Loeb called for the ouster of chief executive Andrew Liveris.

Valeant shares were up 18.6 per cent at $US112.72 after the Canadian drugmaker signed a distribution deal with Walgreens.

Dow component 3M was down 6.2 percent at $147.87 after cutting its 2015 profit outlook.

CHANGING TIMES: Exactly seven years ago, the Fed cut its key interest rate to almost zero because of deteriorating conditions in the economy and in financial markets. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.8 basis points at 2.273%.