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 (DJZ4) rose 7
points to 17,061, while those for the S&P 500 index (SPZ4)
inched up 0.4 point to 1,991.90. 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. The
current-account deficit for the second quarter will come at the
same time, 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 calm 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.
Those gains 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, 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. Need to Know:
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Hong Kong stocks broke a five-session losing streak after 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.
Stocks to watch: Auxilium Pharmaceuticals Inc. (AUXL) soared 37%
in premarket, after news late Tuesday that Endo International PLC
(ENDP) will buy it for $28.10 per share in a cash-and-stock
deal.
Lennar Corp.(LEN) rose 5% in premarket trading after posting a
47% rise in third-quarter profit on Wednesday as higher prices and
deliveries drove up revenue.
U.S. Steel Corp. (X) was up nearly 7% after the company said it
was making major strategic changes late Tuesday.
Adobe Systems Inc. (ADBE) fell just over 4%. The software maker
posted quarterly results on Tuesday.
Rackspace Hosting Inc. (RAX) tumbled 18% after the
cloud-computing company said it won't be selling itself.
Other markets: The Stoxx Europe 600 index took inspiration from
Wall Street and China stimulus, while 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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