ND: Edgy Wall Street In Limbo Ahead Of FOMC Announcement
(RTTNews.com) - Trading in the major U.S. index futures suggests that Wall Street stocks may open Wednesday's session on a nervous note, as the much-awaited FOMC decision is due for the day. Global cues are lackluster, with Asian stocks closing on a mixed note, while the European markets are also seeing nervousness. Although economic data, the direction of oil prices and reaction to earnings from Oracle and Adobe Systems could dictate mood early in the session, the FOMC statement and the ensuing press briefing by Chair Janet Yellen could be the overwhelming influence on the markets.
As of 6:15 am ET, the Dow futures are slipping 13 points, the S&P 500 Index are retreating 0.02 points and the Nasdaq Composite futures are declining 0.75 points.
U.S. stocks ended Tuesday's session on a mixed note, as nervous traders preferred to either stay on sidelines or lighten their holdings.
On the economic front, the Labor Department is scheduled to release its jobless claims report for the week ended March 14th at 8:30 am ET. The consensus estimate calls for an increase in claims to 293,000 from 289,000 in the previous week. The Commerce Department is set to release its current account balance data for the fourth quarter at 8:30 am ET. Economists expect the deficit to widen to $105 billion from $100.3 billion.
Federal Reserve Governor Daniel Tarullo is due to testify before the Senate Banking Committee on banking regulation with FDIC Chair Martin Gruenberg at 10 am ET.
The Philadelphia Federal Reserve is scheduled to release the results of its business outlook survey at 10 am ET. Economists expect the index to increase to 7 in March from 5.2 in February.
At 10 am ET, the Conference Board is due to release its leading economic indicators index for February. The consensus estimate calls for a 0.3 percent month-over-month increase for the month. The Treasury is set to make announcements concerning the auction of 2-year, 5-year and 7-year notes at 1 pm ET.
In
corporate news, Oracle (
ORCL
) reported in line adjusted earnings for its third quarter, while its revenues were below estimates.
Adobe Systems (
ADBE
) reported better than expected first quarter results. However, the company's second quarter guidance was weak.
Quiksilver (ZQK) reported a narrower than expected loss for its first quarter and its revenues exceeded estimates. However, the company lowered its guidance, which was below estimates. Steel Dynamics (STLD) pre-announced first quarter adjusted earnings of 12-16 cents per share, below the 22 cents per share consensus estimate. The company attributed the predicament to lower steel shipments caused by inventory overhang and hesitant customer buying.
Cintas (
CTAS
), CLARCOR (
CLC
), Guess? (GES), Herman Miller (MLHR), Jabil Circuit (
JBL
), Shoe Carnival (SCVL) and Williams-Sonoma (WSM) are among the companies due to release their quarterly results after the close of trading.
The major Asian markets closed on a mixed note, with the Australian, Indonesian, New Zealand, Singaporean and South Korean markets retreated, while the Chinese, Taiwanese, Hong Kong, Japanese and Malaysian markets advanced. Although nervousness concerning the FOMC decision was serving to stifle mood in some of the markets, the Japanese market advanced on the yen's weakness and the Chinese market rallied for the sixth straight session and ended at a fresh multi-year high.
Japan's Nikkei 225 average finished 107.48 points or 0.55 percent higher at 19,545. China's Shanghai Composite Index benefited from weak home prices data, which rekindled stimulus hopes, and added 74.45 points or 2.13 percent before closing at a near 7-year high of 3,577. Hong Kong's Hang Seng Index ended at 24,127, up 225.51 points or 0.94 percent. Meanwhile, Australia's All Ordinaries ended down 3 points or 0.05 percent at 5,808
On the economic front, a government report showed that new home sale prices in China fell at a faster pace in February. On a monthly basis, house prices were lower in 66 out of the 70 cities surveyed.
A report released by Japan'sMinistry of Finance showed that the nation's trade deficit narrowed to 424.60 billion yen in February from 1.179.1 billion yen in January. Economists expected a wider deficit of986.6 billion. Exports rose a better than expected 2.4 percent, while imports fell 3.6 percent.
European stocks opened higher but have since then turned mixed. The U.K. market is advancing moderately, while the French and U.K. market are down modestly. Anticipation ahead of the FOMC decision is keeping nerves taut.
In corporate news, Spanish retailer Inditex reported higher earnings and revenues for the full year 2014.
On the economic front, a report released by the U.K. Office for National Statistics showed that jobless claims fell 31,000 in February from the previous month, while economists expected a drop of 30,000. The unemployment rate calculated based on the ILO standards was at 5.7 percent in the three months ended January, more than the 5.6 percent expected by economists.
The minutes of the Bank of England's March monetary policy meeting showed that the decision to hold interest rate and the size of the asset purchase program unchanged was unanimous.
