12/08/2003 15:20
Stocks are set to crawl higher at the open on Tuesday on momentum from a positive session a day ago, but trading is expected to be light and cautious ahead of the Federal Reserve's assessment of the nation's economy.
The central bank's Federal Open Market Committee (FOMC) will gather to discuss interest-rate strategy and should announce a decision around 2:15 p.m. The FOMC is widely expected to keep interest rates at current 45-year lows to fuel economic growth, but all eyes will be on its view of the U.S. economy.
"We will be watching for the Fed statement," said Arthur Hogan, chief market analyst at Jefferies & Co. "The Fed will walk a fine line, but I think on a couple of fronts we are seeing a pickup in the pace of the economic recovery."
Equity futures pointed to a slightly higher open after gains on Monday. September futures for the Standard & Poor's 500 index ticked up 1 point to 982.30, while September futures for the Nasdaq 100 added 5.50 points to 1,228. Dow Jones Industrial futures rose 17 points to 9,221.
On Monday, the tech-packed Nasdaq broke a six-session losing streak after bullish investment calls on software makers like Oracle Corp. ORCL.O . 3M MMM.N helped pull the blue-chip Dow into positive territory by the end of the day after announcing a stock split.
Stocks have had a lackluster performance since early June after surging from their March 11 lows for the year so far. Many investors are hesitant to pour more cash into the market, saying share prices already reflect an anticipated economic rebound.
Wall Street will get hit with a barrage of data this week that will shed more light on the U.S. economy. Reports on inflation, retail sales and consumer confidence are scheduled later this week.
Results from J.C. Penney Co. Inc. JCP.N and May Department Stores Inc. MAY.N kick off a big week for retailers on Tuesday, with reports from market bellwether Wal-Mart Stores Inc. WMT.N and jeweler Tiffany & Co. TIF.N due on Wednesday.
In other corporate news, Zoran Corp. ZRAN.O , a maker of chips for DVDs and digital cameras, on Monday after the close lowered its earnings-per-share guidance for the third and fourth quarters to reflect dilution from its acquisition of Oak Technology Inc. Zoran shares closed at $23.91.
Pacific Sunwear of California Inc. PSUN.O after Monday's close said its second-quarter earnings surged as a strong trend in surf-inspired fashion drove double-digit sales gains. Shares ended at $30.20.
Comic book publishers Marvel Enterprises Inc. MVL.N reported strong second-quarter profits on Tuesday before the open, helped by licensed products based on characters such as "The Incredible Hulk" and "Spider-Man." Shares ended at $18.65.
Top French insurer Axa AXAF.PA AXA.N led European shares higher at midsession on Tuesday. Volumes were light with many investors on holiday or waiting for the outcome of a Fed meeting. The FTSE Eurotop 300 index .FTEU3 was up 0.75 percent.
Tokyo stocks rose for a third day on Tuesday to end at their highest since Aug. 1, but gains were capped later as investors eyed the U.S. Fed meeting. The Nikkei average .N225 ended up 0.81 percent.
On Monday, the Nasdaq Composite Index .IXIC rose 17.48 points, or 1.06 percent, to 1,661.51. The blue-chip Dow Jones industrial average .DJI added 26.26 points, or 0.29 percent, to end at 9,217.35. The broader Standard & Poor's 500 Index .SPX added 3 points, or 0.31 percent, rising to 980.59.
The central bank's Federal Open Market Committee (FOMC) will gather to discuss interest-rate strategy and should announce a decision around 2:15 p.m. The FOMC is widely expected to keep interest rates at current 45-year lows to fuel economic growth, but all eyes will be on its view of the U.S. economy.
"We will be watching for the Fed statement," said Arthur Hogan, chief market analyst at Jefferies & Co. "The Fed will walk a fine line, but I think on a couple of fronts we are seeing a pickup in the pace of the economic recovery."
Equity futures pointed to a slightly higher open after gains on Monday. September futures for the Standard & Poor's 500 index ticked up 1 point to 982.30, while September futures for the Nasdaq 100 added 5.50 points to 1,228. Dow Jones Industrial futures rose 17 points to 9,221.
On Monday, the tech-packed Nasdaq broke a six-session losing streak after bullish investment calls on software makers like Oracle Corp. ORCL.O . 3M MMM.N helped pull the blue-chip Dow into positive territory by the end of the day after announcing a stock split.
Stocks have had a lackluster performance since early June after surging from their March 11 lows for the year so far. Many investors are hesitant to pour more cash into the market, saying share prices already reflect an anticipated economic rebound.
Wall Street will get hit with a barrage of data this week that will shed more light on the U.S. economy. Reports on inflation, retail sales and consumer confidence are scheduled later this week.
Results from J.C. Penney Co. Inc. JCP.N and May Department Stores Inc. MAY.N kick off a big week for retailers on Tuesday, with reports from market bellwether Wal-Mart Stores Inc. WMT.N and jeweler Tiffany & Co. TIF.N due on Wednesday.
In other corporate news, Zoran Corp. ZRAN.O , a maker of chips for DVDs and digital cameras, on Monday after the close lowered its earnings-per-share guidance for the third and fourth quarters to reflect dilution from its acquisition of Oak Technology Inc. Zoran shares closed at $23.91.
Pacific Sunwear of California Inc. PSUN.O after Monday's close said its second-quarter earnings surged as a strong trend in surf-inspired fashion drove double-digit sales gains. Shares ended at $30.20.
Comic book publishers Marvel Enterprises Inc. MVL.N reported strong second-quarter profits on Tuesday before the open, helped by licensed products based on characters such as "The Incredible Hulk" and "Spider-Man." Shares ended at $18.65.
Top French insurer Axa AXAF.PA AXA.N led European shares higher at midsession on Tuesday. Volumes were light with many investors on holiday or waiting for the outcome of a Fed meeting. The FTSE Eurotop 300 index .FTEU3 was up 0.75 percent.
Tokyo stocks rose for a third day on Tuesday to end at their highest since Aug. 1, but gains were capped later as investors eyed the U.S. Fed meeting. The Nikkei average .N225 ended up 0.81 percent.
On Monday, the Nasdaq Composite Index .IXIC rose 17.48 points, or 1.06 percent, to 1,661.51. The blue-chip Dow Jones industrial average .DJI added 26.26 points, or 0.29 percent, to end at 9,217.35. The broader Standard & Poor's 500 Index .SPX added 3 points, or 0.31 percent, rising to 980.59.
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