Wall Street Sentiment Muted Ahead Of Fed Minutes
Washington (Nov19) Early indications suggest that Wall Street stocks may once again start cautiously on Wednesday, as traders wait for the FOMC minutes, the most important economic release of the day. Earlier in the global trading day, Asian stocks closed mixed, while the European markets are seeing lackluster sentiment following its recent advances. The domestic markets are likely to react to a few retail earnings scheduled for the day, housing starts data and the FOMC minutes.
At 6:15 am ET , the Dow futures are slipping 12 points, the S&P 500 futures are easing 2 points and the Nasdaq 100 futures are moving down 1.50 points.
US stocks advanced amid the release of positive domestic and overseas economic data, with the Dow Industrials and the S&P 500 Index closing at fresh record highs.
On the economic front, the Commerce Department is scheduled to release its housing starts report for October at 8:30 am ET . Economists expect housing starts to come in at a seasonally adjusted annual rate of 1.028 million units, while building permits are expected at 1.035 million units. The Energy Information Administration is due to release the petroleum status report for the week ended November 14th at 10:30 am ET .
The Federal Reserve will release the minutes of October Monetary Policy Committee at 2 pm ET .
In corporate news, PetSmart (PETM) reported better than expected third quarter results and also issued upbeat guidance for the full year. La-Z-Boy (LZB) reported second quarter earnings that exceeded estimates, while its revenues were shy of expectations. The company also announced that its board approved a 33% increase in its quarterly dividend to 8 cents per share. Jack in Box (JACK) reported better than expected fourth quarter results and issued in line operating earnings per share guidance for 2014.
Barrick Gold (ABX) announced the appointment of Shaun Usmar as its CFO designate and he would assume the CFO role on February 18th, 2015 after joining the company on November 24th . Usmar will replace Ammar Al-Joundi , who will leave after the announcement of the company's year-end financial results.
Darden Restaurants (DRI) announced some leadership changes and strategic actions to increase its focus on its restaurant operations. The company's CFO Brad Richmond is set to retire at the end of March 2015 or sooner if his replacement is named. Additionally, the company announced plans to eliminate 25 open positions and restructuring actions having a direct impact on about 60 employees.
L Brands (LB), Education Management (EDMC), Salesforce.com (CRM), Semtech (SMTC) and Williams-Sonoma (WSM) are among the companies due to release their quarterly results after the close of trading.
The major Asian markets closed mixed amid an unchanged monetary policy decision by the Bank of Japan . The Japanese, Australian, Chinese, Hong Kong , Indian and South Korean markets retreated, while the rest of the markets advanced, led by a 1.18% rally by the Taiwanese Weighted Average Index.
The Japanese Nikkei 225 average opened slightly higher and remained mostly above the unchanged line till the mid-session. Subsequently, the index showed volatility amid the Bank of Japan rate decision before closing down 55.31 points or 0.32% at 17,289. Australia's All Ordinaries ended down 30.60 points or 0.57% at 5,353. Hong Kong's Hang Seng Index closed at 23,373, down 155.86 points or 0.66%, and China's Shanghai Composite Index ended 5.38 points or 0.22% lower at 2,451.
On the economic front, the policy board of the Bank of Japan voted 8-1 to maintain the annual pace of increase in the monetary base at about JPY 80 trillion as they wait to see the effect of surprise expansion decision taken late last month. The bank kept its upbeat economic view unchanged, although it raised its assessment on exports.
A report released by Japan's Ministry of Economy, Trade and Industry showed that its all industry activity rose 1% month-over-month in September. The growth was in line with expectations.
European stocks opened slightly higher but have since then lost momentum, as profit taking kicked in following four straight sessions of gains. The major averages in the region are currently mixed.
In corporate news, Areva abandoned its financial forecasts for 2015 and 2016 because of unfavorable market conditions and the postponement of certain customer payments until next year. Royal Mail reported a decline in its profits for its first half and lowered its UK parcels market growth guidance for the next two years. Brokerage ICAP also reported lower profits for its first half.
In economic news, the Eurozone current account surplus increased to a seasonally adjusted EUR 30 billion in September from EUR 22.8 billion in August on higher trade surplus, central bank data showed.
Bank of England policymakers voted 7-2 to keep the main rate at a historic low of 0.50% at the meeting held on November 5 and 6, minutes of the meeting released today showed. However, the decision to maintain the asset purchase program at GBP 375 billion was unanimous.
Source: Alliance
