Shares should open higher before the Fed's decision

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Futures on stocks have indicated greater openness then investors were waiting for the latest monetary policy decision taken by & nbsp;Federal Reserve."data-reactid =" 15 "> Equity futures signaled greater openness as investors waited for the Federal Reserve's latest monetary policy decision.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Future for the S & P 500 (ES = F) increased by 0.31%, or 9.25 points, at 8:14 am. Dow futures (YM = F) increased by 0.36%, or 97 points, while Nasdaq futures (NQ = F) increased by 0.67%, or by 52 points. "data-reactid =" 16 "> Futures contracts for the S & P 500 (ES = F) increased by 0.31%, or 9.25 points, as of 8:14 am (ET). on Dow (YM = F) rose 0.36%, or 97 points, while Nasdaq futures contracts (NQ = F) rose 0.67%, or 52 points.

The Federal Open Market Committee publishes its monetary policy statement at 2 pm AND, where the central bank should largely leave its key rates unchanged between 2.25% and 2.5%.

Starting Wednesday morning, the FedWatch tool closely monitored by the CME Group has shown the markets a 97.5% probability that interest rates will remain unchanged and a probability of reducing rates by 2.5%. In March, the Fed announced that there would be no interest rate hike this year, highlighting at the time the tightening of financial and geopolitical concerns.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The press conference of Jerome Powell at The President of the Fed, 2:30 pm, will present its revised outlook on the national and global economy, after it was shown Friday that the US economy had grown much better than expected & nbsp;3.2% in the first quarter."data-reactid =" 19 "> Jerome Powell's press conference at 14:30, during which the Fed chairman will present a new perspective of the national and global economy. His remarks will come after the presentation of the US economy Friday, growth was much better than expected by 3.2% in the first quarter.

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In particular, investors will want Powell to provide an update on the central bank's inflation outlook, given the recent phenomenon of inflationary signals still below target in the US economy despite the low unemployment rate. In general, both are inversely correlated.

Until March, the pace of basic personal consumption expenditure (PCE), the Fed's preferred measure of inflation, was 1.6%, and the PCE index base for the first quarter of 2019 is established at only 1.3% qoq. quarter. The Fed was challenged to maintain basic reading near a 2% goal.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Other signs of a market work still vigorous appeared Wednesday, with & nbsp;National ADP / Moody Employment Report& nbsp; showing that the private sector saw an increase of 275,000 jobs in April, well above the 180,000 new jobs expected. "data-reactid =" 35 "> The national employment of ADP / Moody's gave additional signs of an ever-vigorous job market report showing that employment in the private sector grew by 275,000 in April, well above the 180,000 new jobs expected.

"The markets are convinced that the Fed's back is turned, but if the US central bank is cautious, it may be difficult to say anything that could spark investors' enthusiasm for equities," he said. Chris Beauchamp, Senior Market Analyst at IG Group. an email. "A drop in the basic PCE means that the bank will keep its" dovish "tilt, but with GDP as strong, a tilt is probably all it will be. Some stock weakness after the Fed would not be surprising, especially now that stock markets have entered the weaker half of the year. "

The US dollar was down slightly below 98, and the 10-year Treasury Note yield was 1.1 basis points lower, at 2.496% ahead of the FOMC policy statement.

Good apple

<p class = "canvas-canvas-text canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Meanwhile, a jump in Apple's stock (AAPL) boosted the three main indices after the publication by & nbsp;better than expected results for the March quarter& nbsp; and forecasts for its third fiscal quarter. Shares of Apple suppliers, including Qualcomm (QCOM), Micron Technology (MU) and Cirrus Logic (CRUS), also outperformed the market after Apple's profits. "data-reactid =" 39 "> At the same time, a rise in Apple's shares (AAPL) boosted the three major indexes after the large-tech company's release of better-than-expected technology Quarterly results in March and third-quarter fiscal year forecast. Shares of Apple's suppliers, including Qualcomm (QCOM), Micron Technology (MU) and Cirrus Logic (CRUS), also outperformed the broadly based market after the loss of profits in the quarter. ; Apple.

The company's management said that the slowdown in iPhone sales, which affected the company by the end of 2018, has since stabilized. Sales in the services sector jumped 16% to a new quarterly record of $ 11.5 billion, which is in line with the company's new plans to expand its service offering to offset the slowdown in growth. hardware sales.

Chief Executive Officer Tim Cook also presented a brighter outlook for the company's sales in China, which declined only 22% in the second quarter of the year, compared with a 26% decline in the first quarter.

Cooks' comments on China, a region accounting for about 18 percent of total second-quarter sales, described in detail the improved economic situation of the world's second-largest economy, with signs of a stronger Chinese consumer helping to dispel fears of a global economic downturn. the spirit of investors since the beginning of the year.

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