U.S. stock indexes inch higher ahead of Fed announcement

U.S. stock indexes inch higher ahead of Fed announcement

The major USA index futures are pointing to a higher opening on Monday, with stocks poised to extend the upward move seen last week.

Markets overseas were mixed Wednesday.

However, the Dow still clocked a closing record for the fifth day in a row while the S&P had a closing record for the second consecutive session.

The major averages all finished the day in positive territory. The Standard & Poor's 500 index inched up 0.1 percent to 2,508.24 and the Dow Jones industrial average rose 0.2 percent to 22,412.59. Over the past 12 months, USA home sales have risen only 0.2 percent.

On the other hand, gold stocks fell sharply following the Fed announcement, dragging the NYSE Arca Gold Bugs Index down by 1.9 percent. Ex-auto sales had been expected to increase by 0.5 percent. Import prices excluding oil rose 0.3% in August after declining 0.1% in July.

The Fed said Hurricane Harvey is estimated to have reduced the rate of change in total output by roughly three-quarters of a percentage point. That isn't expected to improve next month either when the force of the impact from Hurricanes Harvey and Irma weighs on housing starts activity.

So since hitting a low on August 17, the S&P 500 energy sector has risen almost 8% and is the best performing sector so far this month. The index moved higher for the fifth straight day after hitting its lowest closing level in over a year last Friday. Income-seeking investors find those stocks less appealing when bond yields move higher.

Wall Street moved higher, paring some gains after rallying to record highs amid optimism about the United States economic outlook and corporate profits, as investors eyed a meeting by the Federal Reserve which is set to tighten monetary policy.

In Europe the Stoxx 600 Index ended the session with an advance of 0.3 percent from the previous close from the previous close. Hong Kong's Hang Seng index slipped 0.1 percent to 28,072.92 and the Shanghai Composite in mainland China dipped 0.1 percent to 3,361.72.

Australian shares eked out modest gains after major US indexes hit record highs on Friday.

The consumer staples sector.SPLRCS fell 0.9 percent while the utilities sector.SPLRCU ended 0.8 percent lower.

Shares of the major banks Bank of America, Morgan Stanley and Citigroup were up more than 1 percent. The stock was the biggest percentage loser on the S&P technology index.

Traders work on the floor of the New York Stock Exchange in New York. The cereal maker slid $3.21, or 5.8 percent, to $52.17. Japanese markets were closed for a holiday. Seoul shares hit over six-week high after reports that Samsung Electronics and SK Hynix will make a profit of 47 trillion to 48 trillion won (US$41.5 billion to 42.38 billion) in the semiconductor sector this year. "The unwinding of the balance sheet will dominate markets for at least the next two years and cements our outlook for higher rates", said Bryce Doty, senior portfolio manager at SIT Investments, which manages some $7 billion.

Easing of geopolitical tension and fading expectations for Fed tightening this year also supported underlying sentiment.

Last week, the S&P 500 had weekly gains of 1.6%, its best since the first week of January while the more narrower Dow jumped 2.2% for its best week since early last December. France's CAC 40 Index increased 0.3 percent, Germany's DAX Index added 0.3 percent, while the UK's FTSE 100 Index climbed 0.5 percent. The stock lost $6.64, or 4.2 percent, to $149.96.

In economic releases, Eurozone inflation climbed to a four-month high in August, as initially estimated, final data from Eurostat showed today. This was the highest since April and in line with the estimate published on August 31.

Persistently weak readings of inflation that have remained below the Fed's 2 percent target rate have been a concern for policymakers.

Investor focus will shift to the Federal Open Market Committee's two-day meeting, which starts on Tuesday.



Related Posts

WisdomTree Japan Hedged Financials ETF (DXJF) Rises 1.04% for Sep 20
WisdomTree SmallCap Earnings Fund (EES) shares are seeing solid buying inflow as the Chaikin Money Index is holding above zero. SAR stands for stop and reverse and it is a trend following indicator, created to identify the turning point in price action.

Rupee hits 10-week low against U.S. dollar in opening trade
He further added, "The 10-year benchmark bond yield is also likely to consolidate today within the 6.65-6.70 percent range". The local currency had plummeted by a whopping 54 paise to end at 64.81 to a dollar on Thursday.

Cheniere Energy, Inc. (LNG) Insider Acquires $1005100.00 in Stock
Zacks reduced Cheniere Energy from a "strong-buy" recommendation to a "hold" recommendation in a analysis report on Wed, Jul 19th. During last three month period, the net percent change held by Institutional Investors has observed a change of 2.16%.

Trump says giving Mideast peace 'an absolute go'
The president says the US can't abide by an agreement if Iran continues destabilizing activities. It wasn't clear if Trump had made a final decision to leave or stick with the Iran deal.

Bed Bath & Beyond Inc. (BBBY) Issues Earnings Results
Investment Advisors LP lifted its stake in Bed Bath & Beyond by 25.8% in the 2nd quarter. (NASDAQ: BBBY ) for 2,300 shares. Finally, Ameritas Investment Partners Inc. bought a new stake in Bed Bath & Beyond in the first quarter worth $146,000.

UK police arrest three in Wales over London train bomb attack
They have recently helped refugees from conflict zones including Syria and Iraq. "This has come as a big shock to them". A local shopkeeper, who didn't want to be named, said the 21-year-old "came here shopping every once in while".

Active Stock Momentum: United Natural Foods, Inc. (UNFI)
Finally, Northwestern Mutual Wealth Management Co. raised its position in United Natural Foods by 18.3% in the 1st quarter. Cantab Capital Partners Llp bolstered its stake by buying 8,589 shares an increase of 47.6% from 03/31/2017 to 06/30/2017.

Trump Anticipating Meetings With 'Interesting Leaders' at UN
On the nuclear deal, he said, "The Iran Deal was one of the worst and most one-sided transactions the United States has ever entered into".

Still on course: Fed signals one more rate hike in 2017
One vacancy about to open is the seat of Vice Chairman Stanley Fischer, who is stepping down next month. In August, the US jobless rate was 4.4 percent, just above the 16-year low it touched in May and July.

IPhone 8, 8 Plus go on sale in Japan
Hundreds of people jammed Stockton Street in San Francisco to get their hands on the revolutionary device at the inaugural launch. And this year, fans were torn between Friday's holiday and its return in a month and a half.

© 2015 ExpressNewsline. All Rights reserved.