US STOCKS-Wall Street set to open slightly higher; Fed decision looms
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- United States
Wall Street was set to open slightly higher on Wednesday as investors digested another set of earnings reports ahead of a widely expected interest rate cut by the Federal Reserve later in the day. The central bank has already lowered borrowing costs twice this year, with a drawn-out U.S.-China trade war taking a toll on the domestic economy and raising fears of a slowdown.
The Fed decision is due at 2 p.m. ET followed by a press conference from Chair Jerome Powell. Odds of a rate cut have ballooned to over 97% from about 40% a month earlier. Hopes of a rate cut and optimism around trade talks have pushed the benchmark S&P 500 to record highs in the last two sessions.
"Certainly a rate cut is widely factored in," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. "Most people are looking for some sort of a hint that this will likely be it for a while." A Commerce Department report showed U.S. economic growth slowed less than expected in the third quarter as declining business investment was offset by resilient consumer spending and a rebound in exports, which could further allay financial market fears of a recession.
Nearly half of the S&P 500 companies have posted quarterly results so far, of which 77.1% have beaten profit estimates. Still, analysts are expecting a 1.9% drop in third-quarter earnings, according to Refinitiv data. General Electric Co gained 8.6% in premarket trading after the industrial conglomerate beat quarterly profit estimates and raised its cash forecast for the year.
Advanced Micro Devices Inc dropped 0.9% after the chipmaker forecast fourth-quarter sales below expectations. Tech heavyweights Apple Inc and Facebook Inc, as well as coffee chain Starbucks Corp, are due to report after markets close on Wednesday.
At 8:41 a.m. ET, Dow e-minis were up 3 points, or 0.01%. S&P 500 e-minis were up 1.25 points, or 0.04% and Nasdaq 100 e-minis were up 12.5 points, or 0.16%. Among other stocks, Mattel Inc surged nearly 21% after the U.S. toymaker reported a surprise jump in quarterly revenue on higher demand for newer models of its flagship Barbie brand and dolls based on Korean pop-sensation BTS.
Johnson & Johnson rose 3% as the company said 15 new tests found no asbestos in a bottle of baby powder that the U.S. Food and Drug Administration says tested positive for trace amounts of asbestos. FDA said it stands by its finding.
Also Read: Equities flat as investors keep bets low, metal scrips decline
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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