Wall Street set to open slightly higher ahead of Fed's economic outlook
(Reuters) – Wall Street’s main indexes were set to open slightly higher on Wednesday as focus shifted to a Federal Reserve meeting that will deliver the central bank’s first projections on the economy post-coronavirus outbreak.
Investors will also look for clues on how long the central bank plans to maintain its ultra loose policy to support the economy and if it would introduce yield curve control measures after a recent jump in U.S. Treasury yields.
“The economic projections will be particularly instructive in the context of whether Fed policymakers believe a V-shaped recovery is likely, and whether they think the worst is behind the U.S. economy,” said Michael Hewson, chief market analyst at CMC Markets UK.
Prospects of an economic rebound, backed by upbeat data, have boosted stocks in recent weeks, with the Nasdaq .IXIC closing at a record high for a second straight session on Tuesday. The S&P 500 .SPX is about 5% away its all-time peak.
At 8:26 a.m. ET, Dow e-minis 1YMcv1 were up 47 points, or 0.17%. S&P 500 e-minis EScv1 were up 10.5 points, or 0.33% and Nasdaq 100 e-minis NQcv1 were up 78.75 points, or 0.79%.
Apple Inc (AAPL.O) rose 1.2% in premarket trading as two brokerages hiked their price targets on the iPhone maker’s shares.
AMC Entertainment Holdings Inc (AMC.N) rose about 15.5% after the world’s largest theater operator said it expects to reopen its theaters globally in July.
Oil majors Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) dropped about 1.2%, as oil prices weakened after a rise in U.S. crude inventories raised concerns of oversupply. [O/R]
Carriers American Airlines Inc (AAL.O) and United Airlines Holdings (UAL.O) dropped 3.3% and 5.6%, respectively, as J.P.Morgan analysts said the current pace of rise in U.S. airline stocks cannot be maintained for much longer.
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