U.S. stocks open higher, eyes on Fed; Dow Jones up 0.24%

U.S. stocks opened higher on Tuesday, as markets eyed the outcome of the Federal Reserve's monthly policy meeting on Wednesday amid expectations for a small reduction in the bank’s stimulus program. 

During early U.S. trade, the Dow Jones Industrial Average rose 0.24%, the S&P 500 index edged 0.19% higher, while the Nasdaq Composite index gained 0.29%. 

Investors shrugged off data showing that U.S. consumer prices rose 0.1% in August, below forecasts for a 0.2% increase. 

Consumer inflation rose by 1.5% on a year-over-year basis, undershooting expectations for a 1.6% gain.

Core inflation edged up 0.1% in August, bringing the annual rate of core inflation to 1.8%, in line with forecasts. 

Financial stocks were broadly higher, as JPMorgan Chase rose 0.21% and Bank of America edged up 0.07%, while Citigroup added 0.14%. 

Bloomberg reported earlier that two former JPMorgan Chase traders were indicted for engaging in a securities fraud to hide trading losses that eventually surpassed USD6.2 billion on wrong-way derivatives bets last year. 

In the tech sector, Microsoft rallied 1.22% after the company boosted its dividend by 22% to 28 cents a share and set a new USD40 billion buyback. 

Adding to gains, Ford Motor Company shares were up 0.14% even as a report showed European car sales fell to a record low last month. 

On the downside, Mosaic Co. plummeted 2.41% after the fertilizer producer cut its quarterly forecast for potash and phosphate sales and prices. 

Outerwall was also on the downside, diving 15.94%, after the operator of video game and movie kiosks cut its current-quarter and full-year earnings and revenue estimates. 

Other stocks likely to remain in focus included Adobe Systems, scheduled to report earnings later in the day. 

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 edged down 0.08%, France’s CAC 40 slipped 0.11%, Germany's DAX fell 0.13%, while Britain's FTSE 100 declined 0.45%. 

During the Asian trading session, Hong Kong's Hang Seng Index slid 0.31%, while Japan’s Nikkei 225 Index retreated 0.65%.

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European stocks remain lower ahead of Fed statement; Dax down 0.26%

European stocks were lower on Tuesday, despite upbeat euro zone economic sentiment data, as investors remained cautious ahead of the Federal Reserve's highly anticipated two-day policy meeting this week. 

During European afternoon trade, the EURO STOXX 50 retreated 0.43%, France’s CAC 40 declined 0.41%, while Germany’s DAX 30 slipped 0.26%. 


Data showed that German economic sentiment improved significantly more-than-expected in September, rising to the highest level since April 2010. 

In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment rose by 7.6 points to hit 49.6 in September from August’s reading of 42.0. Analysts had expected the index to rise by 4.0 points to 46.0 this month.

The index of euro zone economic sentiment jumped to 58.6 in September, the highest reading since September 2009 and up from 44.0 in August. Economists had expected euro zone economic sentiment to rise to 47.2 this month. 

But markets were jittery ahead of the outcome of the upcoming Fed meeting, after a recent series of lukewarm U.S. data raised doubts over whether the central bank will start to taper its USD85 billion-a-month bond buying program. 

Financial stocks were mixed, as BNP Paribas slid 0.40% and Societe Generale edged up 0.08% in France, while Germany's Deutsche Bank declined 0.66%. 

Among peripheral lenders, Spanish banks BBVA and Banco Santander retreated 0.66% and 0.78% respectively, while Italy's Intesa Sanpaolo declined 0.66% and Unicredit rose 0.29%. 

Elsewhere, Air France-KLM tumbled 1.01% amid reports it is reviewing provincial bases in southern France created just a year ago as the airline company grapples with losses that caught it by surprise. 

In London, FTSE 100 shed 0.50%, still weighed by losses in financial stocks, while data showed that U.K. consumer inflation slowed in August.

Shares in HSBC Holdings retreated 0.97% and the Royal Bank of Scotland lost 0.91%, while Lloyds Banking and Barclays plummeted 1.90% and 2.36%. 

Earlier in the day, the U.K. government sold a GBP3.2 billion stake in Lloyds Banking, in a first step toward full private ownership of Britain’s largest mortgage lender. 

Mining stocks added to losses, with Glencore Xstrata plunging 2.59% and Polymetal down 1.74%, while Vedanta Resources and Evraz saw shares dive 2.61% and 3.07% respectively. 

In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.05% loss, S&P 500 futures signaled a 0.14% decline, while the Nasdaq 100 futures indicated a 0.07% fall. 

Later in the day, the U.S. was to release data on consumer price inflation.

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U.S. futures steady as markets eye Fed meeting; Dow Jones down 0.05%

U.S. stock futures pointed to a steady open on Tuesday, as investors remained cautious ahead of the Federal Reserve's highly anticipated policy meeting, due to begin later in the day. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.05% dip, S&P 500 futures signaled a 0.11% fall, while the Nasdaq 100 futures indicated a 0.06% loss. 

Markets were jittery ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, amid expectations for a small reduction in the bank’s stimulus program.

U.S. stocks gained ground on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew from the contest to succeed Ben Bernanke as the next chairman of the U.S. central bank.

Summers was perceived as being likely to unwind economic stimulus measures more aggressively than the other main contender for the post, Janet Yellen. 

The financial sector was likely to be in focus, following reports two former JPMorgan Chase traders were indicted for engaging in a securities fraud to hide trading losses that eventually surpassed USD6.2 billion on wrong-way derivatives bets last year. 

JPMorgan shares were down 0.08% in pre-market trade. 

Auto stocks were also expected to be active, after a report showed European car sales fell to a record low last month. The news sent shares in Ford Motor Company down 0.17% in early trading. 

Elsewhere, Mosaic Co. added to pre-market losses, tumbling 1.71% after the fertilizer producer cut its quarterly forecast for potash and phosphate sales and prices. 

Other stocks likely to remain in focus included FacSet, Coty and Adobe Systems, scheduled to report earnings later in the day. 

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 slipped 0.26%, France’s CAC 40 shed 0.32%, Germany's DAX fell 0.18%, while Britain's FTSE 100 declined 0.31%. 

During the Asian trading session, Hong Kong's Hang Seng Index slid 0.31%, while Japan’s Nikkei 225 Index retreated 0.65%. 

Later in the day, the U.S. was to release data on consumer price inflation.

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