U.S. equity futures are trading slightly higher following the market's two day rally. Stocks once again shook off geopolitical risks and investor sentiment to push major indices just below their all-time highs reached just over a week ago. Investors will be awaiting the conclusion of the Fed’s two day meeting today for direction. This is the first FOMC meeting that will be presided over by new Fed chief Janet Yellen. The Street will be examining the Fed’s statement at 1:00 pm CT for any change in language or tone compared with the Ben Bernanke era. Option volatility sank again yesterday as the ‘Risk-on’ trade was in favor. The CBOE Volatility Index (VIX) is now down 18.5% on Monday and Tuesday after big gains on the stock pull-back last week. We should remain relatively quiet today ahead of the Fed announcement.
The fixed income markets are up slightly as Bonds have been relatively strong despite the rally in stocks. The 10-year Treasury yield is holding at 2.65% and has remaining in a tight range the last two months. Asian shares are mixed, European equities are mostly moderately lower and U.S. stock futures are higher as markets stay cautious ahead of the FOMC announcing its latest policy decision today. With the Fed expected to taper some more and abandon its 6.5% unemployment rate threshold for considering rate hikes, traders are focusing on the triggers that would push the Fed to finally raise rates from rock-bottom levels. Despite the focus on the Fed, investors should continue to keep an eye on the Ukraine and Russia for any potential market-moving news.
Stock Stories:
FedEx Corp. (FDX) –Undelivered – The global delivery company posted a big miss on its quarterly earnings report this morning. The Company blamed the severe winter storms as disrupting its daily operations as the reason. They are also lowering their FY14 EPS expectations to reflect the poor quarter. FDX shares are down 2% ahead of the opening bell.
Major Economic Reports:
6:00 am CT – MBA Purchase Applications – Down 1.2% for the week
9:30 am CT – Oil Inventories
1:00 pm CT – FOMC meeting announcement
1:30 pm CT – Fed Chair Press Conference |
发表于 2014-3-19 08:52
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