By Barbara Kollmeyer and Anora Mahmudova, MarketWatch
Crude prices sharply lower after unwelcome supply surprise
NEW YORK (MarketWatch) -- U.S. stock futures began pushing south
on Wednesday hours ahead of a statement from the U.S. Federal Open
Market Committee, as investors grew nervous about whether the
central bank will strike the right balance in setting the tone for
its first rate hike in nearly a decade.
From flat throughout Europe's morning, futures for the Dow Jones
Industrial Average (YMM5) fell 82 points to 17,695, while those for
the S&P 500 index (ESM5)(ESM5) dropped about 7 points to 2,059.
Futures for the Nasdaq-100 (NQM5) backed off 13 points to
4,356.5.
Investors will find out if the Fed has taken a further step
toward raising interest rates by taking out the word "patient" from
its current policy statement. "The sole aim today will be to move
to a more data-dependent stance without appearing to commit to a
June rate hike," said Rebecca O'Keeffe, head of investment at
stockbroker Interactive Investor, in a note.
Read: How markets may react to Fed's lack of patience
(http://www.marketwatch.com/story/how-markets-may-react-to-feds-lack-of-patience-2015-03-17)
The bulk of the news will come at 2 p.m. Eastern Time, when a
six-paragraph policy statement is released, along with revamped
economic forecasts and the "dot plot" path of interest rates from
the 17 central bankers. Fed Chairwoman Janet Yellen will speak at a
news conference at 2:30 p.m. More details on that here
(http://www.marketwatch.com/story/heres-what-to-watch-from-the-fed-this-week-2015-03-16).
(http://www.marketwatch.com/story/heres-what-to-watch-from-the-fed-this-week-2015-03-16)The
week has already been a roller coaster for investors with Tuesday's
action
(http://www.marketwatch.com/story/us-stocks-futures-dip-as-pre-fomc-jitters-start-to-seep-in-2015-03-17)
ending in a 128.34-point loss for the Dow industrials (DJI), as
investors got a case of pre-Fed jitters. On Monday, the index
snared a 228-point gain. The S&P 500 (SPX) finished about 0.3%
lower on Tuesday.
The smart money and the Fed: Stan Shamu, market strategist at
IG, said in a note that many feel that Yellen will get it
"absolutely right." And he said the smart money will be looking to
react to the results rather than trying to get ahead of the central
bank's moves.
"The simple reasoning is that the move isn't likely to be a mere
flash in the pan and there will be plenty to digest from the
meeting and news conference. As a result there will be ample time
for traders to initiate positions once all the facts are on the
table," said Shamu in a note.
For two officials, a 'Field of Dreams' moment on FOMC
(http://www.marketwatch.com/story/for-two-officials-a-field-of-dreams-moment-on-fomc-2015-03-17)
Stocks to Watch: Oracle Corp.(ORCL) rose 2% after the company
posted flat earnings, but hiked its dividend
(http://www.marketwatch.com/story/oracle-adobe-burlington-stores-earnings-in-focus-2015-03-17).
(http://www.marketwatch.com/story/oracle-adobe-burlington-stores-earnings-in-focus-2015-03-17)Alibaba
Group Holding Ltd. (BABA) shares fell 1% as the company's
stock-sale lockup ends Wednesday.
Quiksilver Inc.(ZQK) jumped 9% premarket after the outdoor
sports apparel maker reported a narrower-than-expected loss
(http://www.marketwatch.com/story/quiksilvers-stock-rallies-after-narrower-than-expected-loss-2015-03-17)
late Tuesday.
FedEx Corp.(FDX) shares fell after the company reported a
better-than-expected fiscal third-quarter profit
(http://www.marketwatch.com/story/fedex-beats-profit-expectations-but-provides-a-downbeat-outlook-2015-03-18)
but missed revenue estimates.
Guess Inc.(GES) and Williams-Sonoma Inc.(WSM) also are expected
to report quarterly results.
Kraft Foods Group Inc.(KRFT) has recalled 242,000 cases of Kraft
Macaroni & Cheese Dinner boxes
(http://www.marketwatch.com/story/kraft-recalls-242000-cases-of-mac-cheese-dinners-2015-03-18),
saying specific products could contain small metal pieces.
Read more about stock action in the Movers & Shakers column
(http://www.marketwatch.com/story/fedex-general-mills-williams-sonoma-earnings-in-focus-2015-03-18).
Other markets: European stocks were in the red, caught up in the
wait for the Fed outcome. The dollar (DXY) as well, was stuck in
ranges and gold was slightly lower, while U.S. crude prices were
piling on losses (http://www.marketwatch.com/storyno-meta-for-guid)
after the American Petroleum Institute late Tuesday posted a much
sharper-than-expected rise in crude supplies than expected
(http://www.marketwatch.com/story/api-data-show-105-mln-barrel-rise-in-us-crude-supply-2015-03-17).
April crude (CLJ5) was last down about $1.34 to $42.12 a
barrel.
(ESM5)In Asia, the Shanghai Composite
(http://www.marketwatch.com/story/asian-shares-mixed-china-gains-on-stimulus-hopes-2015-03-18)
rallied 2.1% to a near seven-year high.
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