MARKET SNAPSHOT: U.S. Stock Futures On Tenterhooks As 'historic' Fed Decision Looms
September 20 2017 - 8:17AM
Dow Jones News
By Sara Sjolin, MarketWatch
Dollar drops as traders wait for Federal Reserve call
U.S. stock benchmarks looked set to see muted action Wednesday,
with traders refraining from making big bets as they await the
Federal Reserve's next move.
Stock futures switched between small gains and losses in the
early going. Futures for the Dow Jones Industrial Average were down
11 points, or 0.1%, at 22,327, while those for the S&P 500
index slipped less than a point or 0.20 point at 2,505. Futures for
the Nasdaq-100 index fell 3 points, or 0.1%, to 5,994.
The subdued trading environment early comes after all three main
benchmark posted small gains and ended at all-time highs on Tuesday
(http://www.marketwatch.com/story/us-stocks-aim-for-fresh-records-as-fed-meeting-steals-focus-2017-09-19).
The Dow average climbed 0.2%, while the S&P 500 and Nasdaq
Composite Index both ended 0.1% higher.
"Financial markets are consolidating this morning, with all eyes
on the Fed as the [Federal Open Market Committee] conclude their
two-day meeting with the announcement of monetary policy," said
Richard Perry, market analyst at Hantec Markets, said in a
note.
"This could be a historic meeting today. Even though there is no
expectation of a rate hike, the meeting could include the official
announcement that the Fed will begin to reduce the size of its
balance sheet," he added.
Read:Why stock market investors shouldn't sweat a shrinking Fed
balance sheet
(http://www.marketwatch.com/story/why-stock-market-investors-shouldnt-sweat-a-shrinking-fed-balance-sheet-2017-09-19)
Several central bank officials already wanted to start winding
down the Fed's $4.5 trillion portfolio of government securities in
July, but the majority wanted to hold until a later date. Traders
now expect the FOMC on Wednesday to reveal details on a
balance-sheet reduction
(http://www.marketwatch.com/story/feds-balance-sheet-unwind-will-be-moment-of-truth-for-financial-markets-2017-09-18)
that will start in October.
The announcement is due at 2 p.m. Eastern Time, followed by a
news conference with Chairwoman Janet Yellen at 2:30 p.m.
Eastern.
"Any announcement that balance sheet normalization will begin
shortly should have only a relatively muted impact on markets,
given that the market largely expects it," said analysts at
Rabobank in a note.
"We therefore believe that any dollar strength as a result of
the announcement should be limited," they added.
The dollar traded lower against most other currencies ahead of
the announcement. The ICE Dollar Index was down 0.2% at 91.654,
falling for a second straight day.
In other economic news on Wednesday, a reading on existing-home
sales for August is due at 10 a.m. Eastern Time. See:MarketWatch's
economic calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
Stock movers: Shares of General Mills Inc.(GIS) slid 4.6% after
the food company, which brands include Cheerios, Haagen-Dazs and
Betty Crocker, missed profit and sales expectations
(http://www.marketwatch.com/story/general-mills-stock-tumbles-after-profit-and-sales-miss-2017-09-20).
Alnylam Pharmaceuticals Inc. (ALNY) soared 22% premarket after
positive results in a late-stage trial
(http://www.marketwatch.com/story/sanofi-alnylam-report-positive-results-from-late-stage-trial-of-hattr-amyloidosis-treatment-2017-09-20).
Shares of American Outdoor Brands Corp.(AOBC) climbed 0.3% in
thin premarket trade, getting a boost from reports late Tuesday
that President Donald Trump will ease rules on gun exports.
Bed Bath & Beyond Inc.(BBBY) slumped 14% ahead of the bell
after the retailer late on Tuesday released earnings that widely
missed forecasts
(http://www.marketwatch.com/story/bed-bath-beyond-earnings-miss-widely-stock-halted-2017-09-19).
FedEx Corp.(FDX) lost 1.4% premarket after the logistics company
late Tuesday reported earnings below forecasts
(http://www.marketwatch.com/story/fedex-shares-down-after-earnings-company-pins-miss-on-cyberattack-hurricane-harvey-2017-09-19),
saying the quarter offered "significantly operational challenges"
due to a cyberattack and Hurricane Harvey.
Microsoft Corp. (MSFT) slipped 0.2% even after the software
major late Tuesday increased its dividend to 42 cents a share
(http://www.marketwatch.com/story/microsoft-hikes-quarterly-dividend-announces-changes-to-board-of-directors-2017-09-19).
Other markets: Stocks in Europe were mostly higher, although the
U.K.'s FTSE 100 index
(http://www.marketwatch.com/story/ftse-100-edges-up-as-fed-decision-takes-center-stage-2017-09-20)
underperformed due to a rise in the pound. Sterling strengthened
after U.K. retail sales for August showed a bigger rise than
expected
(http://www.marketwatch.com/story/uk-retail-sales-rise-faster-than-expected-2017-09-20).
Asian stocks closed mixed
(http://www.marketwatch.com/story/asian-markets-press-pause-ahead-of-fed-announcement-2017-09-19)
as traders there remained cautious ahead of the Fed call.
Oil prices rose firmly, while metals gained across the
board.
(END) Dow Jones Newswires
September 20, 2017 08:02 ET (12:02 GMT)
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