30 June 2005, 17:33  U.S. stocks headed for higher open

U.S. stocks were set for a positive start Thursday morning bolstered by a $35 billion deal for Bank of America Corp. to buy MBNA Corp. S&P futures were up 4.30 to 1,207.20 while Nasdaq futures lifted 7 to 1,518.50 and Dow futures rose 42 to 10,425. Trading was expected to remain cautious, however, as Wall Street awaits the Federal Reserve's decision on interest rates, which will be released around 2:15 p.m. (Eastern). The central bank is expected to raise rates by another quarter-point to 3.25% but the focus will be on the statement that accompanies the move as Wall Street looks for clues as to when the tightening will end. Still, investor attention was temporarily diverted from the pending Fed decision by the mega credit card deal. Bank of America agreed to buy MBNA for $35 billion in cash and stock, valuing MBNA at $27.50 a share. The move would expand BofA's card business by more than 20 million new customer accounts. Boeing Co. a component of the Dow Jones Industrial Average rallied 4% in early trades on news it picked Jim McNerney, CEO of fellow blue chip 3M Co. as its new chief executive.

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