Investors avoid big bets with Fed confab starting; US stock futures flat
New York (Sept 16) US stock futures showed little change Wednesday, with investors avoiding big bets as they watch for the start of the Federal Reserve’s much-anticipated two-day meeting.
S&P 500 futures ESZ5, -0.08% traded roughly flat at 1,979.75, while Dow Jones Industrial Average futures YMZ5, -0.04% inched higher by 7 points, or less than 0.1%, 16,628. Nasdaq 100 futures NQZ5, +0.01% edged up by 2 points, or less than 0.1%, to 4,363.
“Overall, sentiment remains mixed, with traders unwilling to really commit to a side ahead of Thursday’s announcement, projections and press conference in fear of getting caught off side,” said Colin Cieszynski, chief market strategist at CMC Markets, in a note late Tuesday.
On Tuesday, the S&P 500 SPX, +1.28% closed 1.3% higher. Analysts struggled to pinpoint drivers for the advance, though some said the weak economic data released in that session could help keep the Fed from hiking interest rates.
“Dusting off the ‘bad news is good news’ liquidity trade carries more risks these days, though,” Cieszynski said. “With the Fed apparently on track to raising rates as the U.S. economy strengthens, signs of weakness could impact the outlook for corporate profits and put a cap on recent gains.”
TimeS&P 500 Index9 Sep15 Sep20 Aug26 Aug1 Sep
US:SPX
1,9002,0002,1001,8002,200
Economic news: The Fed’s two-day meeting is due to start Wednesday morning, and the central bank will reveal its decision on interest rates on Thursday afternoon.
Read more: The Fed’s decision on interest rates could rock these 6 markets
Beyond the Fed action, investors are waiting for an inflation reading at 8:30 a.m. Eastern Time on Wednesday. Economists polled by MarketWatch expect the consumer price index to show no change in August, and they forecast a 0.1% rise for core CPI.
A September reading for a housing market index is due at 10 a.m. Eastern, with a reading of 61 expected.
Other markets: Asian stocks jumped on Wednesday, with the Shanghai Composite SHCOMP, +4.89% finishing up 4.9%. European equities SXXP, +1.49% and crude-oil futures CLV5, +1.35% also advanced.
Gold GCZ5, +0.37% gained, while the dollar DXY, +0.21% was little changed against its main rivals.
Individual stocks: Beer giant Anheuser-Busch InBev N.V. BUD, +6.86% has told SABMiller PLC SAB, +21.18% that it plans to make an offer to buy its rival, SABMiller said Wednesday in a news release.
Shares in Hewlett-Packard Co. HPQ, +0.26% could make moves. The shares fell in after-hours action Tuesday after the technology company said it plans to cut 25,000 to 30,000 jobs.
Source: MarketWatch
