By Peter Nurse
Investing.com - U.S. stocks are seen opening largely unchanged Wednesday, remaining near record levels ahead of the conclusion of a much-anticipated Federal Reserve meeting.
At 7 AM ET (1100 GMT), the Dow Futures contract was down 40 points, or 0.1%, S&P 500 Futures traded 3 points, or 0.1%, lower, while Nasdaq 100 Futures climbed 8 points, or 0.1%.
The three major indices all closed at record levels for the third session in a row on Tuesday, boosted by solid corporate earnings. The blue-chip Dow Jones Industrial Average gained almost 140 points, ending 0.4% higher, while the broad-based S&P 500 closed up 0.4% and the technology-focused Nasdaq Composite gained 0.3%.
The U.S. central bank is widely expected to announce the withdrawal of pandemic-era stimulus when it concludes the latest two-day meeting later Wednesday.
Investors will also be listening to what the Fed policy makers say about recent price rises, with inflation at 30-year highs, given that for months they have insisted such increases would be transitory. As such, the 'dot-plot' of policymakers' expectations for future rates will receive particularly scrutiny.
Economic data due for release later Wednesday include the October ADP payrolls number, September factory orders and the October ISM non-manufacturing PMI index.
Corporate earnings continue to flow, with CVS (NYSE:CVS) and Marriott International (NASDAQ:MAR) having reported before the bell, while MGM Resorts (NYSE:MGM), Etsy (NASDAQ:ETSY) and Electronic Arts (NASDAQ:EA) are due after the close.
Zillow (NASDAQ:ZG) will also be in focus after the real estate company announced late Tuesday that it was closing its struggling home-flipping business, while Activision Blizzard (NASDAQ:ATVI) announced it was putting off the release of two of its most awaited video games, ‘Overwatch 2’ and ‘Diablo IV’.
Other companies in the spotlight include Lyft (NASDAQ:LYFT), after the ride-sharing firm reporting better-than-expected third-quarter results, T-Mobile US (NASDAQ:TMUS) and Bed Bath & Beyond (NASDAQ:BBBY), with the former meme favorite announcing several strategic changes to help growth.
Crude prices fell Wednesday after an industry report pointed to a sharp rise in oil inventories in the U.S., the largest consumer in the world, and as pressure grows on OPEC+ to increase supply.
Data from the American Petroleum Institute showed U.S. crude stocks rose by 3.6 million barrels for the week ended Oct. 29, turning the attention on to the official numbers from the U.S. Energy Information Administration at 10:30 AM ET.
The Organization of the Petroleum Exporting Countries and their allies including Russia, a group called OPEC+, meets on Thursday to discuss overall production levels.
OPEC+ is expected to confirm plans for small monthly increases even after U.S. President Joe Biden, speaking at the COP26 climate conference in Glasgow, put the blame for the recent surge in oil and gas prices on the group’s refusal to produce more crude.
By 7 AM ET, U.S. crude futures traded 2.4% lower at $81.92 a barrel, while the Brent contract fell 2.1% to $82.94.
Additionally, gold futures fell 0.3% to $1,784.55/oz, while EUR/USD traded 0.1% higher at 1.1583.