Stocks Flat Pre-Fed
Ahead of the Federal Reserve interest rate announcement scheduled for 2:15 PM
ET, stocks are fractionally higher. A stronger-than-expected durable goods
report this morning erased what had looked to be a solidly higher open.
Durable goods orders for May showed a robust 6% increase, which was greater than
the 2.8% increase analysts expected. The May figure follows an April drop of
6.5% and suggests the economy remains strong.
The Nasdaq futures are up 4.50 points, and the Dow futures are up 7 points.
The S&Ps look to open up 1 point while the yield on the 10-year
Treasury is 6.11%.
While most analysts expect no change in rates, most agree that the comments
from the Fed are what will carry the most weight regarding the future outlook
for stocks.
This Morning
Qualcomm
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PowerRating) said that it expects slower chipset sales in Korea
following that government’s announcement that it will decrease the subsidies it
currently offers to wireless products. After closing Tuesday at 63 11/16,
Qualcomm is trading down to 58 1/2 in pre-market activity.
FedEx
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PowerRating) posted fiscal fourth quarter earnings of 85 cents per share,
beating First Call/Thomson Financial estimates of 81 cents per share. The global
package delivery giant closed Tuesday up 2 15/16 to 37.
Last Night
3Com
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COMS |
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PowerRating) reported losses of 42 cents per share
for its fiscal fourth quarter, which was slightly less than the 44 cents per
share loss First Call/Thomson Financial expected. 3Com closed Tuesday at 48
11/16 and is trading down to 48 1/4 in pre-market activity.
Copper mining company Phelps Dodge
(
PD |
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PowerRating) warned that its second quarter
earnings will be far below Street expectations. The company expects earnings of
60 to 75 cents per share, which is significantly lower than the $1.49 per share
that analysts had expected. After closing at 41 11/16 on Tuesday, Phelps Dodge
is trading down to 37 1/2 on Instinet.