Wall St. still enjoying Fed bounce

NEW YORK (CNNMoney.com) -- U.S. stocks are likely to build on the past session's gains Wednesday as investors keep cheering signs that the Federal Reserve isn't overly concerned about problems in the credit markets.

Trading will begin with fewer people on the floor of the major exchanges after severe weather shut down much of New York's subway and commuter rail service. However, both the New York Stock Exchange and Nasdaq Stock Market said trading would begin as scheduled at 9:30 a.m. ET.

At 8:46 a.m. ET, Nasdaq and S&P futures were higher, with a comparison to fair value pointing to a positive start for stocks.

The Fed acknowledged Tuesday that "credit conditions have become tighter for some households and businesses," but said higher inflation remained its main concern. (Read the Fed statement.)

Central bank policymakers left a key short-term interest rate unchanged and didn't hint at future rate cuts, resulting in volatile trading on Wall Street. But stocks finished the session higher as investors appeared to be soothed that the Fed wasn't panicking about the turmoil in the credit market.

The Fed also said it expects the U.S. economy to keep growing at a "moderate pace." Global stock markets have gyrated in recent weeks as investors have worried that a credit crunch could hurt the broader economy.

On the earnings front, Cisco Systems (Charts, Fortune 500) reported quarterly earnings above analysts' estimates after the market close Tuesday. The company also boosted its long-term sales growth forecast, sending its shares 7 percent higher in Frankfurt early Wednesday.

Luxury homebuilder Toll Brothers (Charts, Fortune 500) said it expects to post a decline in quarterly sales due to the sluggish housing market and said it wasn't comfortable giving a profit forecast.

In economic news, investors will take in a report on June wholesale inventories as well as the government's weekly report on crude supplies.

Overseas markets cheered Wall Street's advance. Asian markets gained, and most European stocks headed higher in midday trading.

Oil prices eased, with U.S. light crude for September delivery declining 47 cents to $71.95 a barrel in electronic trading.

Treasury prices fell, raising the yield on the benchmark 10-year note to 4.81 percent, up from 4.77 percent late Tuesday. Bond prices and yields move in opposite directions.