US pre-open: Stocks seen muted as investors await Fed update
By Iain Gilbert
Date: Wednesday 11 Dec 2019
(Sharecast News) - US futures were pointing to a muted open on Wednesday as market participants awaited the latest policy announcement from the Federal Reserve.
As of 1230 GMT, Dow futures were down 0.13%, while S&P 500 futures were flat and Nasdaq-100 futures were up 0.09%.
The Dow closed 27.88 points lower on Tuesday as stocks finished below the waterline after a choppy session that saw investors remain glued to their screens for any hint of fresh developments in the ongoing US-China trade war.
Investors turned cautious ahead of the bell on Wednesday amid uncertainty on the trade front and ahead of the central bank's rate decision, which is due at 1900 GMT.
Analysts at TD Securities said: "We look for the Fed to keep rates steady at 1.50-1.75%, officially bringing an end to the 75 basis points mid-cycle adjustment.
"The FOMC is likely to communicate patience in deciding future policy moves and to reiterate that a 'material reassessment' in the outlook is a precondition to ease further."
However, TD added: "A dovish surprise should elicit a stronger reaction than a hawkish surprise."
Fed Chairman Jerome Powell will address the press at 1930 GMT.
Elsewhere, there continued to be no clear indication as to whether or not Washington and Beijing will reach an agreement over trade that could stop or reduce the current level of tariffs. The White House was set to slap fresh duties on another $156bn worth of Chinese goods on Sunday.
On the data front, refinance volume buoyed total mortgage application activity 3.8% higher week-on-week, according to the Mortgage Bankers Association's seasonally adjusted index.
Volume was 63% higher than the same week one year ago, while applications to refinance a home loan jumped 9% for the week and were 146% higher year-on-year.
Still to come, November's consumer price index will be published at 1330 GMT.
In corporate news, Home Depot shares were down ahead of the bell after forecasting 2020 sales growth below expectations.
Both American Eagle Outfitters and Lululemon Athletica will post earnings on Wednesday.
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