WASHINGTON (Alliance News) - Wall Street seems to have recoiled after yesterday's strong rally, with the major index futures pointing to an uneventful start on Wednesday, a day ahead of the Fed decision. Policy makers of the Federal Reserve's Monetary Policy Committee is all set to meet today for a 2-day meeting to discuss its likely monetary policy stance.
Given the recent market melt down, uncertainty surrounding Chinese growth and the debt risks threatening recovery in the eurozone, it looks likely that the Fed may refrain from announcing premature monetary policy normalization. The dollar is weaker on tempered rate hike expectations and commodities are firmer. The domestic markets may also draw cues from today's economic data releases, including consumer prices and homebuilder sentiment.
At 6:15 am ET, the Dow futures are slipping 21 points, the S&P 500 futures are declining 3.75 points and the Nasdaq 100 futures are receding 5.25 points.
US stocks advanced notably on Tuesday amid the release of some tepid domestic economic data.
On the economic front, the 2-day FOMC meeting is scheduled to begin today, with opinions divided over what the outcome would be.
The Labor Department is set to release its consumer price inflation report for August at 8:30 am ET. Economists expect consumer prices to have remained unchanged compared to the previous month, while core consumer prices may have edged up 0.2%.
The National Association of Home Builders is due to release the results of its homebuilder sentiment survey at 10 am ET. The consensus estimate calls for an unchanged reading of 61 for September. The Energy Information Administration is scheduled to release its weekly petroleum status report for the week ended September 11th at 10:30 am ET.
In corporate news, United Natural Foods (UNFI) reported fourth quarter earnings per share and revenues in line with estimates. The company reaffirmed its in line 2016 guidance. Separately, the company said it has appointed Michael Zechmeister as Senior Vice President, effective September 15th, and he will succeed Mark Shamber as SVP, Chief Financial Officer and Treasurer, effective mid-October.
Hewlett-Packard (HPQ) said at its 2015 Securities Analysts Meeting that it expects 2016 non-GAAP earnings per share of USD1.85 to USD1.95 per share for the Hewlett Packard Enterprise Company.
Hanover Insurance (THG) said Frederick Eppinger has decided to step down as president and CEO in 2016.
Analog (ALOG), Apogee Enterprises (APOG), CLARCOR (CLC), Oracle (ORCL) and Herman Miller (MLHR) are among the companies due to release their quarterly results after the close of trading.
The Asian markets advanced notably, inspired by the positive lead from Wall Street overnight and the rebound by Chinese stocks. China's Shanghai Composite Index advanced close to 5%, while the Hong Kong, South Korean, Australian, Singaporean and Indian markets also rose notably.
The Japanese market ended higher despite the yen firming up against the dollar. The Nikkei 225 average opened higher and moved sideways in a broad range before ending up 145.12 points or 0.81% at 18,172. Australia's All Ordinaries climbed sharply in early trading and steadily thereafter, ending up 77 points or 1.53% at 5,124.
China's Shanghai Composite Index reversed a 2-session slide and rallied 147.09 points or 4.89% before ending at 3,152. Much of the gains were made on a late hour rally after the index spent much of the session nervously around the unchanged line. Hong Kong's Hang Seng Index ended at 21,967, up 511.43 points or 2.38%.
On the economic front, a leading economic indicators index for Australia compiled by the Melbourne Institute and Westpac showed that conditions could deteriorate. The index eased 0.3% month-over-month in August following a 0.1% rise in July.
European stocks opened higher and are seen sustaining their early gains, as risk appetite perks up.
In corporate news, Swiss luxury group Richemont reported that its sales for the five months ended August increased by 4% at constant exchange rates. At actual exchange rates, sales rose by 16%, helped by the weakening of the euro against the US dollar and related currencies, as well as the strong performance of the Maisons' boutiques. Meanwhile, Spanish fashion retailer Inditex reported a 26% increase in its profits for the first half, helped by sales growth and a weaker euro.
On the economic front, the UK Office of National Statistics reported that the jobless rate calculated based on the ILO standards eased to 5.5% in the three months ended July from 5.6% in the three months ended June. The claimant count for August rose 1,200 in August, in contrast to the decline of 5,000 expected by economists. Pay, excluding bonuses, rose 2.9% year-over-year, the fastest increase in 6 years.
Eurozone inflation slowed to 0.1% in August from 0.2% in July, final data from Eurostat showed. The rate for August was revised down from the flash estimate. 0.2%. Inflation remains well below the European Central Bank's target of 'below, but close to, 2% over the medium term'.
