Stocks are little-changed today as investors hold their breath for the Federal Reserve this afternoon.
S&P 500 futures are within a point of yesterday's close, and commodities are flat. Overseas markets are higher, led by gains of 1 percent in Italy, Hong Kong, and Korea, on the heels of yesterday's broad U.S. rally. The Japanese yen is weak across the board, a sign of risk appetite.
The S&P 500 rose 0.75 percent yesterday, rebounding from a gradual slide over the preceding two weeks. Every major sector and index was positive. The bounce also occurred near the price range where SPX peaked in July, a potential sign that old resistance is becoming support.
Attention now turns to the Fed's monetary announcement at 2 p.m. ET, followed by Chair Janet Yellen's press conference 30 minutes later. Traders mostly want to know how long short-term interest rates will remain low. A removal of the phrase "considerable time" from the policy statement would probably be viewed as hawkish, driving and bond prices lower. Economists are divided in their predictions.
Other events on the calendar include consumer prices at 8:30 a.m., NAHB's homebuilder-sentiment index at 10 a.m. ET and crude-oil inventories at 10:30 a.m. ET. Tomorrow could be even more active, with uncertainty surrounding the Scottish independence vote, jobless claims, housing starts, and building permits.
In company-specific news, FedEx rose 2 percent after earnings and revenue beat forecasts. DuPont rose 4 percent with reports that activist investor Nelson Peltz is seeking a breakup of the chemical giant. General Mills declined 3 percent after missing estimates, and Adobe Systems is 4 percent lower on a weak top-line number. Homebuilder Lennar beat consensus and is up 4 percent as well.
On the merger front, Auxilium Pharmaceuticals surged 45 percent after receiving a $2.2 billion unsolicited takeover offer from Endo International. Rackspace Hosting tanked 17 percent after abandoning efforts to find a buyer.
Copper is the biggest mover in the commodity market, falling 0.75 percent after a quick rally yesterday. Aside from the yen easing slight, the only other story in foreign-exchange markets is the British pound inching back from recent lows triggered by worries about Scottish independence.
