US Stock Futures Little Changed as Wall Street Awaits Word From the Fed

New York (Aug 17)  Stock futures were barely below the flatline on Wednesday morning as investors awaited more clues as to the timeline of an interest rate hike.

S&P 500 futures was down 0.05%, Dow Jones Industrial Average futures fell 0.1%, and Nasdaq futures were flat.

The Federal Reserve will be on watch Wednesday ahead of the release of the minutes from the Federal Open Market Committee's July meeting in the afternoon.

"The minutes are likely to indicate greater confidence in the labor market and domestic economic growth than in June," BNP Paribas analysts wrote in a note. "Near-term risks to the U.S. outlook from the U.K.'s Brexit vote were probably deemed to have diminished. They will probably keep open the option of a September Fed rate hike."

Stocks slid from record highs on Tuesday as worries over the next rate hike superseded joy over the four-day rally in crude oil. Slightly more hawkish commentary from New York Fed President William Dudley and Atlanta Fed President Dennis Lockhart on Tuesday increased the chances of a near-term rate hike.

Stronger economic data has also recently increased the chances of a rate hike from the Fed. The likelihood of a September rate hike currently sits at 18%, while December has much higher chances at 45%, according to CME's fed funds futures. Chances of a September rate hike sat at 12% at the end of last week.

Urban Outfitters (URBN) jumped 12% in premarket trading after reporting a better-than-expected second quarter. The apparel retailer earned 66 cents a share, up from 52 cents a share a year earlier and a dime above estimates. Revenue climbed nearly 3% to $890.56 million, topping consensus by $3.7 million. The company cited "substantial" improvements to its margins as reason for the profit bounce.

Source: TheStreet