Wednesday November 1st

1-11-2017

Dow futures rise 126 points ahead of Fed decision; Facebook and Tesla earnings ahead

U.S. stock index futures pointed to a sharply higher open Wednesday, as investors prepared themselves for the latest cluster of corporate earnings ahead of a decision by the U.S. central bank. Dow Jones industrial average futures rose 126 points, while S&P 500 and Nasdaq 100 futures advanced 10 points and 29 points, respectively. Futures took their cue from overseas equity markets, which also traded higher. The Stoxx 600 index, which is composed of a broad swath of European stocks, rose 0.6 percent. In Asia, the Japanese Nikkei 225 rose 1.9 percent. While a meeting by the U.S. Federal Reserve is expected to be on the minds of investors, a whole host of major brands are also set to publish their latest earnings during the day. After the bell, Facebook, Kraft Heinz, Qualcomm, Tesla, Shake Shack, Cheesecake Factory, Fitbit and Symantec are also set to issue their latest financial figures. On the data front, the U.S. private sector added 235,000 jobs in October, according to a report from ADP and Moody's. Economists polled by Reuters expected a gain of 200,000 jobs. US manufacturing PMI is expected at 9:45 a.m. ET; and, at 10 a.m. ET, the manufacturing ISM report on business and construction spending data are due. On the central bank front, the U.S. Federal Open Market Committee is due to kick-start the second and final day of its regular monetary policy meeting. Investors will be looking out for the FOMC's announcement at 2 p.m. ET, which will include an interest rate decision and commentary on the state of the U.S. economy. Speaking of the Fed, President Donald Trump is expected to announce his pick for the next chair of the central bank Thursday. While there are five key candidates for the role, Fed Governor Jerome Powell has been the recent favorite. Finally in commodities news, oil prices extended gains in early trade after fresh data revealed that oil cartel OPEC had improved its level of compliance considerably. At 8:19 a.m. ET, U.S. crude was trading around $54.98, while Brent hovered around $61.50 per barrel. Stocks in Asia closed higher on Wednesday, with markets in Japan and South Korea leading gains in the region. Japan's Nikkei 225 jumped 1.86 percent, or 408.47 points, to close at 22,420.08, with energy stocks posting gains as oil prices edged up. Across the Korean Strait, the Kospi rose 1.31 percent to end at 2,556.47 on strength in the tech sector. Greater China markets trended higher, with the Hang Seng Index rising 0.79 percent by 3:00 p.m. HK/SIN. On the mainland, the Shanghai Composite edged up 0.08 percent to end at 3,396.0737 and the Shenzhen Composite finished just 0.058 percent above the flat line at 2,003.4435. Gold climbed briefly back above $1,280 an ounce on Wednesday as caution ahead of this week's confirmation of the new Federal Reserve chair and a policy statement from the bank prompted some to close out bets on falling prices. Spot gold was up 0.33 percent at $1,275.42 an ounce at 8:28 a.m. ET, having earlier peaked at $1,280.87. Its upward move accelerated after it broke through its 100-day moving average at $1,275 an ounce, a key chart level.