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U.S. equity futures (/ES) are trading down slightly in light trading led by the tech-heavy NASDAQ. Yesterday saw quiet markets grind higher throughout the session. Investors will be awaiting the Fed's statement later today, as the FOMC is set to conclude its two day meeting. Interest rates are expected to remain unchanged, but investors will examine the central bank's comments in an effort to determine whether any policy changes have been made. Option volatility remains at low levels and the CBOE Volatility Index (VIX) is currently at $13.70. The S&P 500 Index (SPX) once again failed at the $1880 level during yesterday’s session. Until we settle above this point, we should continue to see a build-up of resistance at this technical level for stocks.
Treasuries are a little lower in tandem with modest losses in global bonds. The 10-year yield has edged up to 2.71%. Global equities are mixed and little changed. In overnight news, the Bank of Japan left rates unchanged and trimmed its GDP outlook. Governor Kuroda indicated some disagreement on when the 2% inflation target will be reached. German unemployment fell a larger than expected 25k, while Euro-zone HICP accelerated to 0.7% year over year, hence easing pressure on the ECB to ease further. In the U.S., the FOMC announces its policy decision at 1:00 pm CT. Data includes Q1 GDP and the April ADP private payroll numbers, along with Q1 ECI and the Chicago ISM. Meanwhile, the April nonfarm payroll numbers loom Friday.
Stock Stories:
Ebay, Inc. (EBAY) – Auctioning off – The online bidding site and owner of PayPal reported better than expected EPS and revenue after the close yesterday after the close. The company recorded a tax charge of approximately $3B taken on $9B of foreign earnings from the prior years that were brought back during the quarter to the U.S. The shares are down 4% ahead of the opening bell.
Twitter (TWTR) – Tweet this – The social media giant posted slightly better than expected quarterly results on Tuesday after the close. The company is guiding Q2 and FY14 basically in-line with estimates. Investors do not like the results as the stock is down over 11% in the pre-market.
Major Economic Reports:
6:00 am CT – MBA Purchase Applications – down 5.9% for the week
7:15 am CT – ADP Employment Report
7:30 am CT – Gross Domestic Product (GDP)
7:30 am CT – Employment Cost Index
9:30 am CT – Oil Inventories
1:00 pm CT – FOMC Meeting Announcement
Notable Earnings:
Wednesday:
Before Market: ADT, BCS, D, EXC, GRMN, HES, HSP, H, NI, PSX, SO, TWX, WLP
After Market: ATML, CROX, ELX, JDSU, KMR, LOCK, MET, MUR, ROVI, TSO, YELP
Thursday – 5/1:
Before Market: AVP, BEAM, BZH, CI, CLX, DPZ, GG, K, LINE, MPC, MWW, MYL, TEVA, XOM
After Market: AKAM, AMT, ANR, EXPE, FLR, KRFT, MTW, OPEN, VRTX, WYNN |