Wall Street awaits word from Fed

LONDON (CNNMoney.com) -- Stocks appeared poised for a weak opening Tuesday ahead of the Federal Reserve's eagerly anticipated policy meeting.

U.S. stock futures were pointing to a lower start for Wall Street on a day that is expected to be a key test for the Fed, which is due to release its policy statement at 2:15 p.m. ET.

Investors expect the Fed to lower its benchmark short-term interest rate at today's meeting after more than a year without change, but the central bank could disappoint investors if it doesn't cut rates by as much as they hope.

A quarter-percentage point cut is all but expected, but investors have also been nursing hopes that the Fed will take the federal funds rate down to as low as 4.75 percent, from the current 5.25 percent.

The Fed decision isn't the only market-moving event of the day. Wall Street firm Lehman Brothers (Charts, Fortune 500) is set to post third-quarter results before the market open. It is the first major bank to report earnings since the subprime meltdown and credit crisis hit global financial markets.

Discount brokerage E-Trade (Charts) is the latest company to be hit by the turmoil. The company on Monday cut its full-year profit outlook, saying a tightening in the credit markets was forcing it to exit its wholesale mortgage business.

In global trade, stocks in Asia fell, while major markets in Europe rose in early trading.