MW: U.S. stock futures sit tight ahead of Fed minutes
U.S. stock futures traded in tight ranges on Wednesday ahead of closely watched Federal Reserve minutes that could give clues to the timing of a first interest-rate hike.
Futures for the Dow Jones Industrial Average YMM5, +0.10% rose 22 points to 18,305, indicating another rise after the record close it scored on Tuesday. Futures for the S&P 500 index ESM5, +0.04% added 0.60 point to 2,125.20 on Wednesday, while those for the Nasdaq 100 index NQM5, +0.12% gained 5.75 points to 4,507.00.
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With no data on the docket, all eyes are on the minutes from the Federal Open Market Committee’s April 29 meeting. At that meeting, the FOMC downgraded its assessment of growth, blaming the bad winter weather, the West Coast port strike and a stronger dollar. The comments lowered expectations that the central bank would hike rates as soon as June.
Some economists believe the minutes on Wednesday could eliminate any slim chance of a move in June and instead point to September as the start of rate tightening.
Earlier on Wednesday, Chicago Fed President Charles Evans told an audience in Munich, Germany, that U.S. interest rates should not be increased until early 2016. Evans is a voting member of the FOMC this year and is considered among the most dovish of the central bankers.
The dollar was pushing higher against rivals on Wednesday, with the euro EURUSD, -0.1076% dipping as low as $1.1062 earlier, according to FactSet. The dollar hit a two-month high against the yen in Asian hours, and the pair last traded around ÂĄ120.99.
Earnings: Shares of Lowe’s LOW, -1.68% slumped 6.7% in premarket trade after the home-improvement retailer posted first-quarter earnings that fell short of analysts’ expectations. Office-good retailer Staples SPLS, -0.42% is down 3% after it reported a drop in sales.
Hormel Foods Corp. HRL, +0.13% said second-quarter earnings per share climbed 29% to 67 cents. Shares were unchanged ahead of the bell.
Retail chain Target Corp. TGT, -0.56% reported a better-than-expected 52% increase in profit in its first quarter as its stores attracted more shoppers who spent more on average. Shares rose 1.4% premarket.
After the closing bell, earnings from Salesforce.com Inc. CRM, -1.81% and NetApp Inc. NTAP, +1.58% are on tap.
Movers and shakers: Shares of Etsy Inc. ETSY, +2.14% plunged nearly 20% premarket after the craft-selling site’s first set of quarterly earnings as a public company disappointed investors. The report came out after the close on Tuesday.
On a more upbeat note, Sarepta Therapeutics Inc. SRPT, +2.82% surged 46% ahead of the open, after the pharmaceutical company late Tuesday said it will start submitting data to the Food and Drug Administration for its muscular dystrophy treatment eteplirsen, to begin the marketing-approval process.
J.P. Morgan Chase & Co. JPM, +0.89% and Citigroup Inc. C, +1.21% were also in the spotlight after Reuters reported the banks are expected to plead guilty to U.S. criminal charges related to foreign-exchange manipulation.
Other markets: Japanese stocks NIK, +0.85% ended at their highest level in 15 years after upbeat economic-growth data, while the rest of Asia closed mixed.
European markets were mostly lower, although they fluctuated between small gains and losses.
Crude oil CLN5, +0.91% rebounded after closing at the lowest settlement of the month on Tuesday. Gold prices GCM5, +0.18% rose slightly.
