By RTT News, October 30, 2013, 06:30:00 AM EDT
(RTTNews.com) - Early indications suggest that Wall Street stocks may open higher, as stimulus expectations get entrenched. The major U.S. index futures point to a higher opening on Wednesday. The FOMC is due to make its monetary policy announcement in the afternoon, with traders betting that the Fed will not tamper with its stimulus, given the fragile economic and fiscal backdrop. Traders may also react to a few noteworthy earnings reports and economic data on private payrolls.
At 6:15 am ET, the Dow futures are rising 51 points, the S&P 500 futures are moving up 4.60 points and the Nasdaq 100 futures are advancing 13.50 points.
U.S. stocks advanced solidly on Tuesday amid the release of mostly disappointing economic data and mixed earnings.
On the economic front, ADP is scheduled to release its private payrolls report for October at 8:15 am ET. Economists expect the private sector to have added 138,000 jobs in October following an addition of 166,000 jobs in September.
The Labor Department will release its consumer price inflation report for September at 8:30 am ET. The consensus estimates call for a 0.2 percent month-over-month increase each in consumer prices and core consumer prices. The Treasury will announce the results of the auction of 7-year notes at 1 pm ET.
The FOMC is scheduled to release its post-meeting policy statement at 2 pm ET following the conclusion of its 2-day meeting.
In corporate news, Baidu ( BIDU ) reported third quarter results that exceeded estimates and its guidance was positive. LinkedIn ( LNKD ) reported better than expected third quarter results. The company raised its full year revenue guidance, although the revised guidance is still below Street expectations.
Charles River (CRL) reported better than expected third quarter results. The company's full year earnings guidance surrounded the consensus estimate. Western Union ( WU ) reported better than expected third quarter results and it tightened its 2013 earnings per share guidance, which however is indicated to either meet or miss expectations.
Among the video game software makers, Electronic Arts ( EA ) reported better than expected second quarter results. The full year guidance was fairly upbeat. Take-two Interactive (TWTO) also reported better than expected second quarter results and issued strong 2014 guidance.
DreamWorks Animation (DWA) also reported better than expected third quarter results. Gilead Sciences ( GILD ) reported third quarter earnings and revenues that were ahead of expectations. Flextronics' ( FLEX ) second quarter results were ahead of expectations and its guidance was positive.
Avis Budget ( CAR ), Computer Sciences ( CSC ), Crocs ( CROX ), Emulex ( ELX ), Expedia (EXPD), Facebook ( FB ), JDS Uniphase ( JDSU ), Kraft Foods (KFT), Lincoln National ( LNC ), Marriott ( MAR ), MetLife ( MET ), Starbucks ( SBUX ), Tuesday Morning ( TUES ), Visa (V) and Williams Companies ( WMB ) ate among the companies due to release their quarterly results after the close of trading.
The major Asian markets advanced, encouraged by the positive performance by Wall Street stocks overnight. Stimulus expectations have gained ground ahead of the FOMC decision, increasing interest in risky bets such as equities.
Japan's Nikkei 225 average ended up 176.37 points or 1.23 percent at 14,502. Despite seeing some volatility, Australia's All Ordinaries held above the unchanged line throughout the session before closing up 14.70 points or 0.27 percent at 5,425. Hong Kong's Hang Seng Index closed at 23,304, up 457.48 points or 2 percent, and China's Shanghai Composite Index ended 31.60 points or 1.48 percent higher at 2,161.
On the economic front, a report released by Japan'sMinistry of Economy, Trade and Industry showed that industrial output rose 1.5 percent month-over-month in September. Economists expected a steeper 1.8 percent increase. According to a report released by Japan Automobile Manufacturers' Association, Japanese vehicle production climbed 13 percent year-over-year in September.
New home sales in Australia rose 6.4 percent month-over-month in September, according to a report released by the Australian Housing Industry Association. In August, new home sales had risen 3.4 percent.
European stocks opened on a firmer note and have gained further ground since then. Risk appetite is on the rise amid expectations that the Fed will suggest that its stimulus program may remain in place for some more time.
In corporate news, Sanofi reported that its third quarter declined and also lowered its earnings guidance for the full year. U.K. retailer Next reported strong third quarter sales growth and raised its annual guidance. Norway'sStatoil reported higher earnings on an increase in its oil output.
On the economic front, German unemployment rate decreased in September, according to the results of the labor force survey released by the Federal Statistical Office. The seasonally adjusted unemployment rate dropped to 5.2 percent in September from 5.3 percent in August.
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