By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock market futures stuck to the
flat line on Wednesday, as lingering nervousness over the
conclusion of the Federal Open Market Committee meeting was
balanced by news that China's central bank has flooded its lenders
with liquidity.
Futures for the Dow Jones Industrial Average rose 2 points to
17,056, while those for the S&P 500 index (SPZ4) eased 0.2
point to 1,991.30. Futures for the Nasdaq-100 index (NDZ4) slipped
2.25 points to 4,056.
At 8:30 a.m. Eastern Time, data on consumer prices for August
will be released, with economists expecting no change. At the same
time, the current-account deficit for the second quarter will be
released, while at 10 a.m. Eastern Time, a home builders' index is
on tap.
But the big spotlight falls on the FOMC statement, due at 2 p.m.
Eastern Time, followed by a news conference with Federal Reserve
Chairwoman Janet Yellen. Some calming fears over rate hikes helped
push the Dow industrials (DJI) to an intraday record high on
Tuesday, and the S&P 500 index (SPX) to its biggest one-day
gain in four weeks.
Wall Street's upbeat day came after Jon Hilsenrath, chief
economic correspondent at The Wall Street Journal, said in a
webcast that he thinks the Fed may keep the words "considerable
time" in its policy statement, but with clarification. He added
that the Fed probably doesn't want to send a signal right now that
rate hikes are imminent. Eight keys to Fed's September meeting and
Fed's exit plan may be a bumpy ride for investors
If the "considerable time" phrase sticks in the Fed statement,
the market will be left as complacent on interest rates as it was
two weeks ago, said Chris Beauchamp, market analyst at IG, in a
note. However, "it will mean that equity indexes should recover
some of the upward momentum that has been lacking in recent
sessions," he added.
China lent a hand to sentiment. A senior Chinese banking
executive said the People's Bank of China is injecting 500 billion
yuan ($81 billion) into the country's five big state-owned banks to
help counter an economic slowdown. A string of recent weak data has
heightened worries among investors. That news helped Hong Kong
stocks break a five-session losing streak.
Stocks to watch: U.S. Steel Corp. (X) could add to a 7.4%
late-session gain after the company said it was making major
strategic changes.
Adobe Systems Inc. (ADBE) could add to a nearly 5% late-session
drop after quarterly results.
Rackspace Hosting Inc. (RAX) may tumble in premarket. Shares
fell 16% late Tuesday after the cloud-computing company said it
won't be selling itself.
Other markets: The Stoxx Europe 600 index rose, encouraged by
Wall Street's up day on Tuesday and China stimulus. The FTSE 100
managed small gains ahead of Thursday's vote on Scottish
independence. Gold(GCZ4) was unable to hang onto positive
territory. Barclays cut its forecast for the metal, citing risks
skewed to the downside.
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