* August retail sales in line with expectations
* Fed to meet on Wednesday and Thursday
* Fiat Chrysler up as talks with union continues
* Futures up: Dow 1 pt, S&P and Nasdaq up less than a point (Adds details, comment, updates prices)
By Tanya Agrawal
Sept 15 (Reuters) - U.S. stocks were set to open little changed on Tuesday as concerns about growth in China made investors more cautious ahead of this week’s Federal Reserve meeting, which will decide on the first interest rate increase since 2006.
Chinese stocks dropped almost 4 percent on Tuesday, denting hopes that a slew of stimulus measures by Beijing over the past three months had brought some stability to the market.
Chinese investment and factory output data for August released on Monday fell short of market forecasts.
“It’s all about caution today,” said Andy Sullivan, a portfolio manager with Swiss investment firm GL Financial Group.
“There is concern about the Fed, plus the China data continuing to be weak.”
S&P 500 e-minis were up 0.5 points, or 0.03 percent, with 263,752 contracts changing hands at 8:34 a.m. ET (1234 GMT). Nasdaq 100 e-minis were up 0.25 points, or 0.01 percent, in volume of 25,061 contracts. Dow e-minis were up 1 points, or 0.01 percent, with 22,774 contracts changing hands.
A broad group of economists polled by Reuters last week bet on a September move by a slim margin. Economists at banks that deal directly with the Fed picked December as more likely, while traders of short-term interest rate futures were giving a rate rise this week only a one-in-four chance.
U.S. consumer spending appeared to grow at a fairly healthy pace in August, data released on Tuesday showed.
The Commerce Department said retail sales excluding automobiles, gasoline, building materials and food services increased 0.4 percent, in line with expectations.
Industrial production is forecast to have slipped 0.2 percent last month. That data is expected at 9:15 a.m. ET. Data at 10 a.m. ET is expected to show that business inventories are likely to have added 0.1 percent in July after gaining 0.8 percent in June.
Shares of Fiat Chrysler Automobiles were up 3.1 percent at $14.78 premarket after the United Auto Workers union said it will keep talking with the automaker to reach a new contract for the company’s U.S. factory workers, delaying a possible strike at its most profitable operations.
XenoPort was up 7.9 percent at $7.26 premarket after the drugmaker said its experimental drug was effective in treating psoriasis. (Reporting by Tanya Agrawal; Editing by Don Sebastian)