U.S. stock futures open mixed as earnings and monetary policy decision

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U.S. stock futures open mixed as earnings and monetary policy decision

Stock futures opened Thursday evening on the heels of a meandering day for the three major indexes with investors digesting an onslaught of corporate earnings results and looking ahead to a monetary policy decision from the Fed.

Contracts on the S&P 500 ticked higher, after the index ended on Tuesday just short of a record high during the normal trading day.Alphabet gained in late trading, after the company posted First-quarter sales and profits that easily exceeded estimates, fueled by a resurgence of marketing spending among customers.What competitor companies have topped the share of Microsoft, but though earnings, the share of two company shareholders and Dow component ran down in near all major metrics.

A monetary policy decision by the Federal Open Market Committee on Wednesday will punctuate what otherwise has been a busy week full of corporate earnings results.Many pundits expect the meeting of FOMC April to yield virtually no new developments, with policymakers waiting until more data emerge on the economic recovery to determine the timing for an adjustment to their ultra-accommodative policy.

We expect no major developments in the US for the FOMC policies at the April roundtable.Fedspeak from March has been consistent on acknowledging improved activity amid the introduction of vaccines, reopening and fiscal stimulus, said Lewis Alexander, the U.S. chief economist at Nomura, in Tuesday note.

However, participants have also been clear that they are likely to remain patient in removing accommodation, adding he added.As a result, we expect the Fed's key forward guidance for loan rates and asset purchases to acknowledge better economic activity, but do not look for changes in the Fed's post-meeting statements.We think April is likely too early for the conversations around tapering to accelerate.

But the likely uneventfulness of the FOMC meeting in April will belie the significant role the central bank has continued to play in underpinning markets over the course of the pandemic.As a result, even the slightest hints at tweaking current policies in the form of increasing the $120 billion per month asset purchase program or demonetization of rates have been consistently monitor by market participants.

' The main directional driver for equity is the fact that the Fed continues to pump money into the market, Steve Sosnick told Yahoo Finance on Tuesday.That's what is providing a floor under things and that's what provides the ammunition so to speak for the market rally that we're seeing.

But in the very near-term, many noted that the economy, at least, remains well equipped to continue on its current, stimulus- and vaccine-fueled trajectory.

Right now I think we see the perfect equation of near-term growth.We see billions of dollars in stimulus flooding into the economy, creating a stimulus-fueled consumer that is anxious to rush into the markets and businesses that are eager to open up and welcome those consumer back in with open arms, Lindsey Piegza, Stifel chief economist, told Yahoo Finance on Tuesday.What we're seeing is this flurry of demand, which in fact is falling short of this surge of demand, which is expected to continue to carry growth forward, not only through the first quarter, but much of 2021.

Emily McCormick is a reporter for Yahoo Finance.Follow Emily McCck on Twitter :

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