By Barbara Kollmeyer, MarketWatch Staples, Lowe's shares rise in
wake of results
MADRID (MarketWatch) -- On the heels of yet another record
session for major U.S. indexes, futures traded cautiously
Wednesday, ahead of minutes of the latest Federal Open Market
Committee meeting that could shed light on policy makers'
thinking.
Upbeat results lifted shares of Lowe's Cos. and Staples Inc. in
premarket trading.
Futures for the S&P 500 index (SPZ4) eased 1.7 points to
2,047.20, while those for the Dow Jones Industrial Average (DJZ4)
dipped 9 points to 17,643. Futures for the Nasdaq-100 index (NDZ4)
were up 0.5 points to 4,238.50.
On Tuesday, the S&P 500 (SPX) and the Dow industrials (DJI)
managed the 43rd and 26th record closes for the year, respectively,
amid the view that global central banks will stay accommodative.
Biotechnology stocks were among the best performers. See Tuesday's
Market Snapshot
Futures were going nowhere ahead of minutes of the Federal
Reserve's Oct. 28-29 meeting, due at 2 p.m. Eastern Time. A reading
on housing starts for October is due at 8:30 a.m. Eastern.
"Every nuance will be pored over, but the basic question is
whether the FOMC will vote for rate hikes as long as the economic
recovery continues, or only if signs of inflation appear?" said Kit
Juckes, global macro strategist at Société Générale, in a note. How
to read the Fed's stiff upper lip on inflation
If the current 3%-plus momentum in U.S. real GDP growth
continues into 2015, Juckes believes rates will rise next year,
though he notes the markets' "collective position is
indecisive."
"All in all, the key will be in whether the minutes rubber-stamp
the edging up in hawkishness or whether [they] will throw the doves
an olive branch," said Jim Reid, strategist at Deutsche Bank, in a
note.
Tuesday's data indicated strong confidence among home builders,
but also revealed a surprise spike in producer prices.
Retail names report: Home improvement and office-goods retailing
sectors rolled out earnings early, and so far, so good. Lowe's
(LOW) shares rose 2% in premarket after the home-improvement
retailer lifted its sales outlook and beat forecasts with its
results.(LOW) Staples (SPLS) gained 3.7% after its earnings.Target
(TGT) is also due to report ahead of the opening bell.
La-Z-Boy Inc. (LZB) could get a boost after the furniture maker
beat Wall Street expectations late Tuesday. Jack in the Box Inc.
(JACK) shares also rose late, on a gain in sales.
TransCanada Corp. (TRP) shares are pitching lower after the
Senate last night narrowly rejected a bill to approve the
construction of the company's Keystone XL oil pipeline.
Bank of Japan, Bank of England weigh in: The dollar(USDJPY) hit
fresh seven-year highs against the yen, shooting past Yen117. The
Bank of Japan on Wednesday stuck to maintaining its large-scale
easing policy and its upbeat assessment of the economy despite
downbeat economic -growth figures that prompted Prime Minister
Shinzo Abe to delay a tax increase and call early elections. Read:
Potential crises make the dollar the place to be
The Nikkei 225 fell 0.3% in its first chance to react since Abe announced the plans.
In the U.K., meanwhile, minutes of the Bank of England's
rate-setting Monetary Policy Committee's November policy meeting
hinted at deepening divisions and concerns from some members that
the U.K. could overshoot its inflation target. The FTSE 100 index
pulled back slightly while some European stocks managed modest
gains.
Oil prices(CLZ4) remained rangebound, while gold (GCZ4) also
firmed up, pushing just past $1,201.40 an ounce.
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