Equities are little-changed this morning after a strong close
yesterday as investors brace for the Federal Reserve's announcement
at 2 p.m. ET.
Most European indexes are fractionally lower and near their lows of
the session. Asian markets were mixed in the overnight session as
Japan's Nikkei gained almost 2 percent but China fell about 1
The S&P 500 peaked at 1687 on May 22, only to retreat as
investors worried the Fed would reduce monetary stimulus measures.
It found support earlier this month at its 50-day moving average
and has now been muscling higher since. The index climbed steadily
yesterday, ending the session up 0.78 percent.
Perhaps more importantly, its 10-day moving average is now climbing
for the first time this month--suggesting that short-term momentum
is turning bullish again.
market scanner also shows outperformance over the last week in
economically sensitive sectors such as energy, industrials, and
consumer-discretionary stocks. That indicates that investors expect
further economic growth later this year.
After the Fed today, tomorrow will be the week's busiest session of
economic releases. It starts early in the morning with Chinese
manufacturing numbers, European service-sector data, and then
initial jobless claims in the United States.
There is very little volatility in foreign-exchange or commodity
markets so far today. Oil, copper, the euro, and Australian dollar
are fractionally higher. But the Japanese yen, which tends to move
in the opposite direction as stocks, is also up slightly.
In company-specific news, FedEx is roughly flat after reporting
better-than-expected profit but revenue that lagged estimates.
Adobe Systems is set to rally 6 percent as customers embrace its
new online revenue model, resulting in strong quarterly results.
Dell could also be active after billionaire investor Carl Icahn
increased his stake in the computer maker and urged the company to
buy back shares rather than accept a takeover by led by founder