MARKET SNAPSHOT: U.S. Stocks Set To Pull Back With Fed Meeting In Focus
March 14 2017 - 6:54AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
Airlines watched as blizzard bears down on East Coast
U.S. stock futures drifted lower on Tuesday, with investors
still reluctant to make any big bets ahead of the start of the
two-day Federal Open Market Committee meeting.
Meanwhile, a blizzard bearing down on New York City threatened
to cut into trading volumes, with hundreds of flights already
canceled across parts of the East Coast and a state of emergency
declared
(http://www.marketwatch.com/story/new-york-city-under-state-of-emergency-with-life-threatening-blizzard-set-to-hit-2017-03-14)
for the city itself.
"U.S. markets could well feel the effect of the blizzard that
has descended on New York in the past few hours. We could be in for
a volume-light session, compounding the probability of another
snooze-fest for US markets ahead of tomorrow's Fed decision," Chris
Beauchamp, IG market analyst, told clients in a note Tuesday.
Dow Jones Industrial Average futures dropped 23 points, or 0.1%,
to 20,819, while S&P 500 futures lost 3.3 points, or 0.1%, to
2,368.50. Nasdaq-100 fell 5.75 points, or 0.1%, to 5,393.50.
Wall Street stocks closed mostly higher on Monday
(http://www.marketwatch.com/story/wall-street-stocks-set-for-cautious-start-as-fed-meeting-looms-2017-03-13),
but moves were limited as investors took to the sidelines ahead of
the coming Federal Reserve decision. The S&P 500 index added
less than a point to 2,373.47, while the Nasdaq Composite Index
rose 0.2% to 5,875.78.
The exception was the Dow industrials , which fell 0.1% to
20,881.48.
The National Federation of Independent Business reported early
Tuesday that small-business owners' optimism dipped
(http://www.marketwatch.com/story/small-business-sentiment-stays-strong-nfib-says-but-slips-in-february-2017-03-14)
in February, but stayed close to long-term highs. The other
top-tier economic data on tap Tuesday are producer prices for
February, due at 8:30 a.m. Eastern Time.
The main event, the FOMC meeting, will begin later. The market
sees an 93% probability that the policy makers will vote for an
interest rate increase, according to data from the CME Group
(http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html).
The Fed's statement and new economic projections won't be
released until 2 p.m. Eastern on Wednesday, followed by a news
conference hosted by Fed Chairwoman Janet Yellen. The FOMC's policy
statement will be examined for signals about the timing and pace of
future interest-rate hikes.
Tuesday's blizzard isn't expected to delay the release of the
Fed's decision, as a similar storm didn't stop the central bank
from meeting in early 2016
(http://www.marketwatch.com/story/blizzard-likely-wont-delay-fed-from-raising-rates-2017-03-13).
Stocks to watch: Shares of Valeant Pharmaceuticals International
Inc.(VRX.T) tumbled 12% premarket after Bill Ackman's Pershing
Square Capital Management said it has sold its 10% stake
(http://www.marketwatch.com/story/bill-ackman-sells-valeant-stake-to-step-down-from-board-2017-03-13)
in the company amid mounting losses. Ackman himself plans to step
down from the board.
Airlines stocks, such as American Airlines Group Inc. (AAL),
Southwest Airlines Co. (LUV) and Delta Air Lines Inc. (DAL) may be
on the watchlist for Tuesday. Hundreds of flights have reportedly
been canceled across the East Coast as the snowstorm hit, according
to FlightAware (https://uk.flightaware.com/live/cancelled/).
Yahoo Inc.(YHOO) released details of a $23 million golden
parachute
(http://www.marketwatch.com/story/yahoos-marissa-mayer-to-get-23-million-severance-package-2017-03-13)
for the planned exit of CEO Marissa Mayer after the company sells
its core assets to Verizon (VZ) .
Shares of automation software group Synopsys Inc.(SNPS) could
grab attention after news the company will enter the S&P 500
(http://www.marketwatch.com/story/synopsys-to-be-added-to-sp-500-2017-03-13)
after the open of trade on Thursday.
Other markets: European stocks drifted lower
(http://www.marketwatch.com/story/european-stocks-edge-back-after-4-session-win-streak-2017-03-14),
outside of a small gain for the FTSE 100 , which benefited from a
sharp drop in the British pound.
The pound tapped its lowest levels against the dollar since
earlier this year
(http://www.marketwatch.com/story/uk-pound-slides-to-lowest-in-weeks-after-lawmakers-clear-a-path-for-brexit-2017-03-14)--
trading around $1.2129 after British lawmakers on Monday passed a
law that will allow the Brexit process to begin. The pound also
tumbled against the yen and the euro .
Oil prices rose moderately, while gold prices were flat.
(END) Dow Jones Newswires
March 14, 2017 06:39 ET (10:39 GMT)
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