Neutral Bias?
Stocks are leaning toward a green open as traders await the Federal Reserve
announcement at 2:15 PM ET.
While analysts are unanimous that the Fed will leave rates unchanged, some
have speculated that the Fed’s interest rate bias may be lowered to neutral, and
that may be helping stocks somewhat this morning.
The Dow futures are up 25 points, and the Nasdaq futures are up 51.50 points.
The S&Ps look to open up 6 points while the yield on the 10-year
Treasury is 5.84%.
In economic news, new home sales for August will be released at 10:00 AM ET,
and Street estimates look for a figure of 893,000.
Tuesday Movers
Xerox
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PowerRating) was the latest company to join the earnings warning parade,
saying it expected to post a 10 to 15 cents loss for its upcoming quarter
because of slowing sales in North America and Europe. After closing at 15 5/16
on Monday, Xerox traded down to 12 3/4 on Instinet and is currently bid at 12
1/2.
Intel
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PowerRating) fell 1 7/16 to 40 1/8 on Monday, its lowest level since
January, but the chip king is trading higher Tuesday following news from the
Semiconductor Industry Association that August was a record for worldwide chip
sales. Intel is trading up to 41 1/4 in pre-market activity.
Monday Follow-up
Check Point Software
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PowerRating) ignored Monday’s selloff and soared 9 to an
all-time high 168 1/2 on more than double-average volume. Check Point is
adding to those gains and is trading up to 169 1/2 in pre-market activity. The
company has also announced a strategic partnership with Broadcom.
Dell Computer
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PowerRating) was one of Monday’s casualties, falling 15/16 to 29
1/4, which put Dell near its 2-year low. Dell is showing some signs of life
Tuesday and is trading up to 30 1/16 in pre-market activity.