MARKET SNAPSHOT: Nasdaq Stocks Poised To Halt 2-session Skid, As Wall Street Turns To Fed
Apple, Netflix, Facebook rise in premarket trading
Beaten-down technology stocks were attempting their first gain in three sessions on Tuesday, as U.S. stock futures edged 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 21 points, or 0.1%, to 21,205, while S&P 500 futures added 4.1 points, or 0.2%, to 2,430.50. Nasdaq-100 futures advanced 16.75 points, or 0.3%, to 5,736.
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)
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.
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). A report on producer prices for the same month is due at 8:30 a.m. Eastern.
Stock movers: In a sign that techs might be ready to rise, shares of Neflix Inc. (NFLX) climbed 1.2% in premarket, while Apple(AAPL) rose 0.8% and Facebook Inc. (FB) added 0.7%.
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 higher (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 08:00 ET (12:00 GMT)