4:05pm: Stocks higher as Fed meeting continues
US stocks finished Tuesday’s trading day higher ahead of the Federal Reserve’s upcoming rate-setting decision.
The S&P 500 gained 0.7% or 27 points at 4,193 points, the Nasdaq was up 0.5% or 62 points at 12,851 points, and the Dow Jones was up 0.4% or 124 points at 33,053 points.
Pinterest closed 19.2% higher at about US$30 after Wednesday’s third quarter earnings beat while Caterpillar shares shed 6.6% at about US$226 as its forecast of slowing sales growth offset its better-than-expected earnings.
12:00pm: US stocks subdued, consumer confidence falls
US stocks were little changed, above early lows, as the Fed's two-day meeting kicks off and after consumer confidence fell by less than expected.
At midday, the Dow Jones Industrial Average was up 13.33 points, 0.04%, at 32,942.29, the S&P was up 7.50 points, 0.2%, at 4,174.32 and the Nasdaq Composite was little changed at 12,786.30.
US consumer confidence dropped to a five-month low in October, weighed down by dimmer views of business conditions and concerns about high prices.
The Conference Board’s index fell to 102.6 this month from an upwardly revised 104.3 in September, data showed.
The median estimate in Bloomberg survey of economists looked for 100.5.
Conference Board chief economist Dana Peterson said consumers were more worried about inflation, war and conflicts, higher interest rates and the “political situation”.
9:40am: US stocks open on the back foot, Caterpillar down 6%
US stocks fell back in early trading, with blue-chips on the back foot after results from Caterpillar and Amgen disappointed.
Shortly after the opening the Dow Jones Industrial Average was down 117.08 points, 0.4%, at 32,811.88, the S&P 500 was down 7.69 points, 0.2%, at 4,159.13 while the Nasdaq Composite was down 75.52 points, 0.6%, at 12,713.97.
Alongside, another hefty batch of earnings investors are casting an eye to the Federal Reserve's two-day rate setting meeting.
Bank of America thinks the Federal Reserve will "likely hold rates steady" despite accelerating GDP and employment.
"The Fed has adopted a more cautious tone due to the UST long-end rate rise, arguing rates markets have done some of its tightening," it pointed out.
"We think Powell will repeat his argument that more hikes could be warranted if there is "additional evidence" of above-trend growth or a tightening labor market," the bank said.
Caterpillar fell 5.6% after disappointing fourth quarter guidance, warning margins would fall back at the end of the financial year while Amgen slipped 4.3% after its numbers.
JetBlue plunged 12% after it warned fourth-quarter losses would be wider than forecast.
The warning came as the carrier posted worse-than-expected third quarter losses and revenue.
“While we have been able to offset some of the costs associated with the challenging operational backdrop, the sheer magnitude of the air traffic control and weather-related delays has been staggering," Ursula Hurley, JetBlue’s chief financial officer said.
7:00am: Stocks expected to nurse modest losses at the open
US stocks look set for a subdued start consolidating Monday’s strong gains as the Federal Reserve kicks of its two-day meeting to decide whether to stick or twist on interest rates.
In pre-market trading, futures for the Dow Jones Industrial Average were flat, while those for the S&P 500 were down 0.2%, and contracts for the Nasdaq 100 futures fell 0.4%.
The US central bank is expected to leave interest rates unchanged at its meeting with the CME FedWatch tool suggesting a 98% probability that rates will stay at current levels.
David Mericle at Goldman Sachs (NYSE:GS) said: "Fed officials appear to have signalled that they will not be hiking at their November meeting next week, and we interpret their recent comments to imply that most would prefer not to hike again, consistent with our forecast."
"The FOMC appears to have coalesced around the view that the recent tightening in financial conditions led by higher long-term interest rates has made another hike unnecessary," he pointed out.
It’s another busy day for earnings with AMD, Pfizer, and Caterpillar among companies updating investors on trading.
Stocks to watch include Nvidia fell 0.6% in pre-market trading after The Wall Street Journal reported, citing sources familiar with the matter, that the chipmaker may cancel billions of dollars in orders from China due to tighter US controls.
In economic news, consumer confidence is expected to have declined in October, with the Conference Board’s consumer confidence index reading forecast to drop to 100 from 103 last month.