These 2 Reports Could Be Market Movers On Wednesday

Consumer Confidence for June was 105.8, higher than the expected 104. It
was a three-year high and higher than May’s 103.1 reading. For the first half of
2005, the S&P 500 is off 1.1%. This compares with +2.6% in 2004 and +10.8% in
2003. Treasuries dipped on the news–the biggest drop in two weeks. The report
put a damper on speculation that the Fed may be done raising rates.
On Wednesday, look for the final Q1 GDP report.

The FOMC meets this week, beginning tomorrow. Economists are looking for a quarter point
rise–to 3.25%–and no major change in the policy statement. Specifically, the
words “accommodative” and “measured pace” are expected to remain intact. It is
also quarter end and half-year end. It will be the ninth increase in the past
year.

The Senate passed the energy bill. The
legislation aims to reduce dependence on foreign oil  and provides
incentives for construction of nuclear power plants. Under the bill, by 2020,
10% of all electricity produced by utilities would have to be from solar, wind
and biomass. The House approved a separate bill and the two versions must be
reconciled before it can be sent to President Bush.

In a CNBC interview, Treasury Secretary John Snow
said of energy prices: “Clearly, it’s hurting. I don’t see it derailing the
strong recovery we’re in…but it does take a few tenths of a percentage point
off GDP growth, that’s for sure.”

Tomorrow, look for the DOE inventory report
at 10:30 AM ET.

Gold futures fell to their lowest level in a
week ahead of the Fed.

T. Boone Pickens said he sees gasoline reaching
$3/gallon within a year.

Brice Wightman