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U.S. futures point to steady open ahead of data, Fed decision

Published 05/01/2013, 07:16 AM
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Investing.com - U.S. stock futures pointed to a steady open on Wednesday, as market players awaited the release of key U.S. economic data later in the day, as well as the outcome of the Federal Reserve's policy meeting.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a modest 0.1% gain, S&P 500 futures signaled a 0.1% increase, while the Nasdaq 100 futures indicated a 0.1% advance.

Market players awaited the outcome of the Fed’s two-day policy meeting, as investors try to assess the central bank's attitude towards monetary stimulus.

Recent economic data has dampened expectations for an earlier than expected end to the central bank’s asset purchase program after recent Fed minutes showed that policymakers are divided over the benefits of ongoing monetary easing.

Data on Tuesday showed that the Chicago purchasing managers’ index dropped 49.0 in April from 52.4 in March, the lowest level since September 2009.

The dismal data came after a report last week showed that the U.S. economy grew 2.5% in the first quarter, falling short of expectations for 3.0% growth, underlining concerns over the outlook for the economic recovery.

The U.S. was to release data on ADP nonfarm payrolls report later in the trading day, while the Institute of Supply Management was release a report on manufacturing activity.

Shares in media conglomerate Viacom were expected to be active after the firm reported second quarter revenue of USD3.14 billion, below expectations for revenue of USd3.18 billion.

Cable television provider Comcast reported first quarter earnings per share of USD0.54, above expectations for earnings per share of USD0.51. However, revenue figures came in below estimates.

Also in earnings news, pharmaceutical giant Merck said first quarter revenue totaled USD11.1 billion, below expectations for sales of USD11.7 billion. The downbeat earnings prompted the company to lower its full-year earnings outlook.

The company also announced a stock buy-back plan amounting to USD15 billion.

Other stocks in focus included, social media company Facebook, scheduled to post earnings later in the day.

Across the Atlantic, London’s FTSE 100 edged 0.6% higher in quiet trade. Trade volumes were expected to remain thin, with many markets in Europe closed for the Labor Day holiday.

During the Asian trading session, Australia’s ASX/200 Index ended down 0.5%, while Japan’s Nikkei 225 Index closed 0.4% lower, following the release of disappointing Chinese manufacturing data.

The state-affiliated China Federation of Logistics and Purchasing said that its manufacturing activity index fell to 50.6 in April from March’s reading of 50.9.

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