New ETF Book by Larry Connors - Click here to read more
By Steve Goldstein
U.S. stock futures rose on Wednesday, with traders ignoring the traditional caution ahead of a Federal Reserve interest-rate meeting to take a riskier stance.
S&P 500 futures rose 5.2 points to 1046.90 and Nasdaq 100 futures added 4 points to 1679.50. Futures on the Dow Jones Industrial Average rose 53 points.
Equity strategists at Credit Suisse Group (CS) reiterated their year-end 1,100 call for the S&P 500 as they told investors "don't sell equities," citing the economic outlook, earnings, credit indicators, valuation, positioning, excess liquidity and tactical indicators.
The main event for Wednesday will be the Federal Open Market Committee's interest rate decision, due 2:15 p.m., EST.
The question isn't whether the Fed will change interests from current near-zero levels, but whether it will provide any signals as to a withdrawal of some of the extraordinary measures it's enacted to help the economy limit the damage from the credit crunch.
One phrase from the Fed's last statement will draw particular scrutiny as to whether it's repeated: "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period."
Currency analysts at Societe Generale (SCGLY) expect the phrase to stay, though some in the market expect a slight change.
"Any such change would be a big event for risky assets, which have been well supported by generous liquidity conditions," said the analysts, who suggested buying the dollar on dips on the "hunch" that concerns over growth, global liquidity and the bank sector will send investors away from perceived riskier assets.
Before the Fed decision, there's economic data, including the widely followed but oft-volatile Automatic Data Processing Inc. (ADP) employment gauge for October as well as the Institute for Supply Manufacturing's non-manufacturing index for October.
On the earnings front, the major report comes after the close when Cisco Systems Inc. (CSCO) unveils results.
Among the firms reporting, Comcast Corp. (CMCSA) rose 5% as the cable operator reported a stronger-than-forecast 22% profit rise. Time Warner (TWX) Inc., which wasn't yet active, lifted its 2009 view.
Dow industrials component Kraft Foods Inc. (KFT) fell 3% after reporting weaker-than-expected sales late Tuesday. Kraft also didn't say whether it will make a formal bid for Britain's Cadbury PLC (CBY) ahead of a deadline.
In Asia, the Nikkei 225 rose 0.4% while the Kospi Composite advanced 1.9% in Seoul.
Europe stocks also were strong, with the Stoxx 600 rising 1.1%.
The currency markets when into risk-taking mode, lifting the euro against major rivals and the dollar vs. the Japanese yen.
Gold futures hit a fresh record high, climbing as high as $1,096.20 an ounce.
Before weekly inventories data, oil futures recaptured the $80 a barrel mark.
Yields on 10-year Treasury bonds rose 2 basis point to 3.49%.
U.S. stocks ended around unchanged Tuesday, as the decision by Warren Buffett's Berkshire Hathaway Inc.'s (BRKA, BRKB) plans to buy the 77% stake it doesn't already own in railroad operator Burlington Northern Santa Fe Corp. (BNI) in a deal that values the company at $44 billion, including $10 billion in debt, was offset by weakness in the chip sector on a Morgan Stanley (MS) downgrade and news that Johnson & Johnson (JNJ) was cutting 7% of its workforce.
The Dow Jones Industrial Average fell 17 points, while the S&P 500 rose 2 points and the Nasdaq Composite added 8 points.
-By Steve Goldstein;44 2078 429 424; AskNewswires@dowjones.com
(END) Dow Jones Newswires
11-04-09 0741ET
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
