MARKET SNAPSHOT: Wall Street Looks To End Two-session Slide; Investors Await Fed Meeting

By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica Features Dow Jones Newswires

Apple, Netflix, Facebook rise in premarket trading

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Beaten-down technology stocks were attempting their first gain in three sessions on Tuesday, helping to push U.S. stock futures tentatively higher ahead of the start of a closely watched Federal Reserve meeting, which could offer clues about the central bank's monetary-policy plan.

Dow Jones Industrial Average futures rose 33 points, or 0.2%, to 21,217, while S&P 500 futures added 5.6 points, or 0.2%, to 2,432. Nasdaq-100 futures advanced 23 points, or 0.4%, to 5,743.

On Monday, the Nasdaq Composite Index and the S&P 500 index marked a second day of losses (http://www.marketwatch.com/story/tech-stocks-set-to-slump-again-as-nasdaq-100-futures-drop-1-2017-06-12), dropping 0.5% and 0.1% respectively as Apple Inc. and other major tech names came under pressure again. The Dow industrials snapped a three-session winning streak to finish 0.2% lower.

Read:Don't panic--this shows tech stocks' slide may well be a buying opportunity (http://www.marketwatch.com/story/whats-next-for-technology-stocks-bloodbath-or-bliss-2017-06-12)

And see: What sparked the Nasdaq's worst two-session, tech-fueled rout in 9 months (http://www.marketwatch.com/story/what-sparked-the-nasdaqs-worst-two-session-rout-in-9-months-2017-06-12)

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On the bright side, Chris Weston, chief market strategist at IG, said alongside the tech selling, investors have been rotating into the energy and financial sectors, which could potentially offer up better returns.

Weston doesn't really think the 10% decline "that many had been talking about on Friday," will come to pass, he said in a note to clients.

FOMC kicks off: Investors are turning their attention to the two-day Federal Open Market Committee meeting that wraps up Wednesday with a press conference with Fed Chairwoman Janet Yellen.

Market observers are nearly unanimous in the view that the fed-funds rate will be lifted, with a 95.8% chance of an interest-rate increase, according to the CME Group (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html?redirect=/trading/interest-rates/fed-funds.html).

Investors will scrutinize the Fed's words to see if they support expectations that the central bank will signal another interest rate increase is coming this year.

The Fed "has been confronted recently with softer inflation data and only scattered evidence of an expected reacceleration of activity," David Joy, chief market strategist at Ameriprise Financial wrote in a note to clients. "While few expect the Fed to refrain from acting this time, what it must say about upcoming meetings and the possible timing of the start of unwinding its balance sheet will be scrutinized."

Also of interest for investors will be Attorney General Jeff Session, who will testify before the Senate Intelligence Committee (http://www.marketwatch.com/story/sessions-to-testify-at-open-senate-hearing-on-tuesday-committee-says-2017-06-12) on Tuesday and is expected to be questioned as part of the panel's investigation into Russian efforts to interfere in last year's election. The Justice Department's Russia probe is seen as a potential headwind for the market, as any protracted controversy involving President Donald Trump could reduce the odds that his economic agenda gets passed, which analysts say is necessary to justify current valuations.

Check out: Here's what the Fed will signal when it hikes interest rates (http://www.marketwatch.com/story/heres-what-the-fed-will-signal-when-it-hikes-interest-rates-2017-06-12)

Economic data: The National Federation of Independent Business reported small-business sentiment was steady in May (http://www.marketwatch.com/story/small-business-sentiment-holds-steady-in-may-2017-06-13). Separately, the producer price index (http://www.marketwatch.com/story/us-wholesale-inflation-eases-in-may-but-still-elevated-ppi-shows-2017-06-13) was flat last month following a sharp 0.5% increase in April, as had been expected.

Stock movers: In a sign that tech stocks might be on track to snap their recent selloff, shares of Neflix Inc. (NFLX) climbed 1.2% in premarket, while Apple(AAPL) rose 0.8% and Facebook Inc. (FB) added 0.7%.

Eli Lilly & Co. (LLY) rose 1.5% in premarket trading after the company said its pain drug with Pfizer Inc. (PFE) had received fast track designation (http://www.marketwatch.com/story/eli-lilly-stock-rises-15-after-pain-drug-gets-fast-track-designation-from-fda-2017-06-13) from the Food and Drug Administration.

Cheesecake Factory Inc. (CAKE) shares fell 10% before the bell after the company cut its second-quarter outlook (http://www.marketwatch.com/story/cheesecake-factory-shares-sink-after-downward-revision-of-guidance-2017-06-13).

Electronic Arts Inc.(EA) shares could be active as the E3 videogames trade show officially kicks off in Los Angeles on Tuesday.

Other markets: European stocks were firmer across the board (http://www.marketwatch.com/story/european-stocks-rise-as-techs-move-toward-recouping-losses-2017-06-13), lifted by rises for tech stocks. Asian markets shook off Wall Street's woes and posted gains (http://www.marketwatch.com/story/asian-markets-shake-off-wall-streets-woes-post-gains-2017-06-12).

The dollar fell, chiefly against the British pound , which rose after a bigger-than-expected gain in U.K. inflation. Oil prices shifted lower (http://www.marketwatch.com/story/oil-prices-higher-again-but-supply-glut-hangs-over-market-2017-06-13), and gold prices pulled back.

(END) Dow Jones Newswires

June 13, 2017 09:23 ET (13:23 GMT)