Stock futures point to higher opening ahead of Fed announcement

Stock futures are indicating a higher opening on Wall Street Wednesday ahead of data on consumer prices and housing and the Federal Reserve's decision on interest rates.
DEC 16, 2009
Stock futures are indicating a higher opening on Wall Street Wednesday ahead of data on consumer prices and housing and the Federal Reserve's decision on interest rates. Overseas markets were mostly higher. The Fed, which concludes its two-day meeting this afternoon, is expected to stick to its easy monetary policy and keep rates unchanged. Before that decision, the Labor Department is set to report on consumer prices for November, a day after government data showed wholesale prices jumped more than expected. Consumer prices are expected to have risen, driven by more expensive energy products. Economists surveyed by Thomson Reuters expect consumer prices rose by 0.4 percent last month following a 0.3 percent increase in October. Excluding food and energy, they expect core inflation will show a smaller 0.1 percent rise, lower than the 0.2 percent increase in October. At the same time, the Commerce Department reports on housing construction and applications for building permits in November. Housing construction likely posted a big rebound, helped by better weather. Economists expect new home construction to increase to an annual rate of about 580,000 in November. Ahead of the opening bell, Dow Jones industrial average futures rose 34, or 0.3 percent, to 10,492. Standard & Poor's 500 index futures rose 5.00, or 0.5 percent, to 1,108.90, while Nasdaq 100 index futures rose 11.00, or 0.6 percent, to 1,806.00. On Tuesday, stocks fell for the first time in five days and Treasurys slipped after a jump in wholesale prices spooked investors, wondering if the Federal Reserve would be forced to raise interest rates. The Fed isn't expected to raise rates from their record low level, but the economic data was a reminder the central bank could be forced to act sooner than expected to keep inflation at bay. The Fed's statement on rates and policies is expected at 2:15 p.m. EST. Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.58 percent from 3.60 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.05 percent from 0.03 percent. The dollar fell against other major currencies, while gold prices rose. Overseas, Japan's Nikkei stock average rose 0.9 percent. In afternoon trading, Britain's FTSE 100 was up 0.2 percent, Germany's DAX index was up 1.1 percent, and France's CAC-40 was up 0.8 percent.

Latest News

LPL adds $600M UBS team in Tennessee
LPL adds $600M UBS team in Tennessee

The firm's latest additions, led by a second-generation financial advisor, are striking out via its Linsco employee advisor channel.

eMoney supports focused financial planning with enhanced needs analysis
eMoney supports focused financial planning with enhanced needs analysis

The Fidelity-owned fintech aims to help advisors connect with mass market and mass affluent prospects with single-goal conversations.

Trump SEC pick Paul Atkins grilled by Democrats in early political test
Trump SEC pick Paul Atkins grilled by Democrats in early political test

The prospective chair of the agency has pledged to shed conflicted interests and "return common sense to the SEC."

Finra moves to boot Alpine Securities, same firm that claims the regulator can’t
Finra moves to boot Alpine Securities, same firm that claims the regulator can’t

'If I were on the side of Alpine Securities, I’d put all my eggs in the federal court,' one attorney said.

CFP Board floats new procedural rules around bankruptcy, misdemeanors
CFP Board floats new procedural rules around bankruptcy, misdemeanors

If approved, the proposed revisions would achieve outcomes similar to the existing process while reducing the burden of oversight.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve