Markets Hesitate as Fed Committee Meets

LONDON -- The Dow Jones Industrial Average (INDEX: ^DJI  ) and the S&P 500 (INDEX: ^GSPC  ) may open higher this morning, according to futures markets. Trading is expected to be cautious ahead of Wednesday's Fed announcement and Thursday's European Central Bank statement.

Despite this, a considerable amount of new economic data is due today. Personal income and consumer spending figures are due at 8:30 a.m. EDT and are expected to show small increases. Due at the same time are June's core PCE and employment cost indexes, both of which are also expected to rise slightly. At 9 a.m. EDT the Case-Shiller Home Price index for May is due, followed at 9:45 a.m. EDT by the Chicago PMI and finally July's Consumer Confidence Index at 10 a.m. EDT.

In company news, Pfizer is expected to report earnings before the bell, while at the time of writing, Aetna had already reported earnings 5% above analysts' expectations for the second quarter. Other major companies due to report this morning include Tyco International, Goodyear Tire & Rubber, United States Steel, and Cummins. Shares of Seagate Technology could also see active trading when markets open following disappointing quarterly figures, which were published after the bell last night.

In Europe, the main markets got off to a cautious start this morning, but Spain's IBEX and Italy's FTSE MIB soon picked up yesterday's rally and surged ahead before falling back, finishing the morning up by 0.8% and 0.7%, respectively. At 7 a.m. EDT, the DAX was up by 0.5%, and France's CAC was up by just 0.2%.

London's flagship FTSE 100 (INDEX: ^FTSE  ) index was down by 0.4% at 7 a.m. EDT, despite moderate gains from many big resource shares. The main force holding back the index was oil giant BP, which was down 4% on high volumes following weak Q2 figures. Engineering group Weir, which has a heavy presence in the oil and gas industry, was also down following its latest update.

Billionaire investor Warren Buffett rarely invests in resource shares, but he did recently invest more than $1 billion in a major U.K. FTSE 100 company. The legendary investor recently bought a famous British name with global expansion potential -- and you can discover the identity of the company and the price he paid in this special exclusive report. Best of all, the report is free, so download it today while it's still available.

Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is The Motley Fool's latest report. We urge you to read it today -- your wealth could be transformed. Click here now to request your free, no-obligation copy. The Motley Fool is helping Britain invest. Better.

Further investment opportunities:

Roland Head owns no shares of any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Pfizer and Cummins. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1964998, ~/Articles/ArticleHandler.aspx, 11/27/2014 4:42:38 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement