By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- Stock futures largely stuck to the flat
line ahead of a decision from the Federal Open Market Committee,
though technology stocks look set to see pressure as Facebook Inc.
shares fell after results.
Futures for the S&P 500 index (SPZ4) rose 0.5 points to
1,980.60, while those for the Dow industrials (DJZ4) rose 15 points
to 16,952. However, futures for the Nasdaq-100 index (NDZ4) fell 6
points to 4,088.25.
Stocks rallied Tuesday on hopes for a market-pleasing outcome
from the Fed meeting. The Nasdaq Composite Index (RIXF)
outperformed other main indexes with a 1.75% gain, while the
S&P 500 index (SPX) jumped 1.2% and the Dow industrials (DJI)
managed a triple-digit rise.
Officials are expected to announce the end of the Fed's lengthy
bond-buying program. Stocks have risen as traders have gotten
bullish in anticipation that the Fed will be dovish with its
forward guidance, said Jonathan Sudaria, dealer at London Capital
Group. And therein lies the risk.
"In exchange for pulling the plug, markets will need to get
something in return or they could throw another taper tantrum," he
said in a note. Read: Fed will hold market's hand as it ends
QE3
The wrap of the Fed meeting is the only item on the economic
calendar for Wednesday.
Techs under pressure: Tech stocks weren't shaping up for a
repeat of Tuesday, thanks in part to Facebook Inc.(FB), which fell
7% in thin premarket trading as the social-networking company beat
forecasts, but warned of higher costs. While results in the past
year have been impressive and hard to beat, tougher comparisons and
higher spending are on investors' minds, said Pacific Crest
Securities' analyst Evan Wilson, in a note.
Facebook joins Twitter Inc. (TWTR) in dealing with what's been a
tough week for some Internet stocks. Twitter fell nearly 10% on
Tuesday after the social-media company's results showed slowing
growth in new users and analysts downgraded the stock. Read:
Facebook user growth may be slowing too
More stocks to watch: Ahead of the opening bell, Goodyear Tire
& Rubber Co. (GT), Hershey Co.(HSY) , Ralph Lauren Corp. (RL)
and WellPoint Inc. (WLP) are all due to report. See Movers &
Shakers
Electronic Arts Inc. (EA) could see more gains, after
second-quarter results topped Wall Street forecasts and the
videogame publisher lifted its outlook.
InvenSense Inc. (INVN) shares were off 22% in premarket trading
after the micro-electro-mechnical systems designer posted
second-quarter results that fell short of market expectations.
Pacific Crest downgraded shares to sector perform from
underperform.
Other markets: European stocks rose slightly, while Asian
markets took a cue from Wall Street's strong gains on Tuesday and
powered ahead. Gold(GCZ4) and the dollar(DXY) were steady, while
oil(CLZ4) logged moderate gains.
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