fbpx

Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

US stocks-index futures slightly rose before Fed meeting

stocks12US stock-index futures were little changed, signaling the Standard & Poor’s 500 Index will remain near a record high, as investors awaited the Federal Reserve’s decision on reducing its monthly bond purchases.

Standard & Poors 500 futures expiring in December added 0.2% to 1,701 at 10:21 a.m. in London. The benchmark index climbed to 1,704.76 yesterday, less than five points below its all-time high of 1,709.67 reached on Aug. 2. Contracts on the Dow Jones Industrial Average increased 21 points, or 0.1%, to 15,486 today.

“Market participants are likely to trade on a positive footing as Fed tapering seems to be priced in,” Stephane Ekolo, chief European strategist at Market Securities in London, said in an interview for Bloomberg. “Most investors expect the Fed to scale back in its monthly bond purchases, a reduction in the corridor of $5 billion to $15 billion.”

The Federal Open Market Committee starts up a two-day policy meeting today. Analysts are divided on the amount by which the Fed will scale back its monthly asset purchases. Among 64 economists surveyed by Bloomberg News, 33 predict it will reduce its buying of Treasuries by $5 billion or less, with 31 forecasting a cut of $10 billion or more.

Joshua Mahony, research analyst at Alpari U.K., said any tapering announcement of less than $10 billion to $15 billion a month could trigger a relief rally for stocks, and a sell off for the dollar.

In corporate world, Dollar Tree gained 3.1% to $57.58. The discount-store operator said its board authorized $2 billion in equity repurchases. The Chesapeake, Virginia-based company also said it agreed with JP Morgan Chase & Co. to buy back $1 billion in shares under a variable maturity accelerated program.

Adobe climbed 5.4% to $50.75 in Germany. The number of Web subscribers jumped 47% in the fiscal third-quarter, despite the decline in sales and profit.

Electronic Arts Inc. late Tuesday announced it named Andrew Wilson as its new chief executive. EA has been operating without a CEO since March when John Riccitiello stepped down. Shares of EA rose 0.5% in after-hours trading.

Today, FedEx is projected to report first-quarter earnings of $1.50 a share, according to a consensus survey by Thomson Reuters.

General Mills Inc. is likely to post earnings of 70 cents a share in the first quarter.

Oracle Corp. is expected to post first-quarter earnings of 56 cents a share.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News