U.S. stocks appear headed for a moderately lower open on Tuesday as traders anxiously await the outcome of the September Federal Open Market Committee meeting.
On Monday, the major averages opened lower and were largely confined below the unchanged line before a late-hour buying surge lifted the market, helping to snap a two-session slide.
Material, utility industrial and consumer discretionary stocks gained ground during the session, while healthcare and real estate stocks came under selling pressure.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | +0.76% | 11,535.02 | |
| S&P 500 Index | +0.69% | 3,899.89 | |
| Dow Industrials | +0.64% | 31,019.68 |
Here’s a peek into index futures trading:
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | -0.65% | |
| S&P 500 Futures | -0.52% | |
| Dow Futures | -0.46% | |
| R2K Futures | -0.44% |
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) was dropping 0.46% to $386.76 and the Invesco QQQ Trust(NASDAQ:QQQ) was down 0.51% to $289.40, according to Benzinga Pro data.
On the economic front, the Commerce Department is scheduled to release the U.S. housing starts and building permits data for August at 8:30 a.m. ET. Housing starts are widely expected to rise 1% month-over-month following a 9.6% fall in the previous month. Building permits, a leading indicator of housing market activity are expected to see a steeper decline relative to the previous month.
The Treasury will restart the sale of 20-year Treasury bonds.
The FOMC meets on Tuesday, although its rate decision is not expected until Wednesday. Hedge fund manager Louis Navellier expects the accompanying statement to be dovish.
“I am hoping for dovish words like the Fed is 'near parity/neutral' or that it will be 'data dependent' moving forward,” he said in a note. He also hoped that the central bank would raise rates by 25-basis-point increments each in the November and December meetings. In anticipation of a 75-basis-point increase at the September meeting, the yield on the 10-year Treasury note has spiked to its highest level since 2011.
Stocks In Focus:
Ford Motor Co. (NYSE:F) is pulling back after it announced parts shortage and higher-than-expected costs will impact third-quarter earnings.
Twitter, Inc. (NYSE:TWTR) could be in the spotlight as its co-founder and former CEO Jack Dorsey gets deposed in connection with the lawsuit to enforce Elon Musk’s $44 billion take-private deal.
Nike, Inc. (NYSE:NKE) was seen slipping after Barclays downgraded the stock citing excess inventory and earnings risk.
Commodity, Global Markets: Crude oil futures are modestly higher, with a barrel of WTI grade oil trading at $85.55, up 0.22%. On Monday, the black gold advanced about 0.73%.
Asian stocks rose on Tuesday, tracking Wall Street’s lead, although traders exercised caution ahead of the FOMC meeting.
The European markets sold off in late morning trading. Some of the negativity could be traced back to the Swedish central bank’s decision to raise interest rates by a more than expected one percentage point to 1.75%, citing high inflation.
