Federal Reserve Meeting Takes Center Stage

There's more than just a potential rate hike to keep an eye on

By Anthony Mirhaydari, InvestorPlace Market Strategist

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U.S. equities posted a modest rebound on Tuesday ahead of Wednesday’s Federal Reserve policy announcement. The S&P 500 gained 0.2%, cutting its weekly loss to 1.3%. The Nasdaq climbed 0.3% amid ongoing unevenness in big-cap tech stocks. Treasury bonds declined, pushing the 10-year yield up to 2.9%.

Heading into the Fed meeting, watch for:

*An interest rate hike. This is all but baked in.

*A lift to the “dot plot” as policymakers lift their expectations for inflation, economic growth and rates.

*Commentary from Fed chairman Jerome Powell on the “balance of risks” to the inflation and growth outlook during his post-announcement press conference.

After this, Friday is expected to bring President Donald Trump’s announcement of tariffs against China, set to total $60 billion.

All of this should contribute to ongoing market volatility as the Dow Jones Industrial Average continues to be in the grips of a breakdown from its two-month wedge pattern. So keep an eye on these three stocks:

Facebook Inc (NASDAQ:FB) lost another 2.6% on reports the FTC is investigating whether recent headlines about data mining by Cambridge Analytica violated a 2011 settlement regarding privacy. The company will next report results on May 2 after the close. Analysts are looking for earnings of $1.36 per share on revenues of $11.4 billion.

Twitter Inc (NYSE:TWTR) fell 10.4% on reports Israel is considering sanctions for allegedly ignoring terror related content. The company will next report results on April 25 before the bell. Analysts are looking for earnings of 11 cents per share on revenues of $606 million.

Oracle Corporation (NYSE:ORCL) lost 9.4% after better-than-expected quarterly results were overshadowed by disappointing results for the cloud computing segment and tepid guidance.  Earnings of 83 cents per share beat estimates by 11 cents on a 5.4% rise in revenues.

Check out Serge Berger’s Trade of the Day for March 21.

Today’s Trading Landscape

To see a list of the companies reporting earnings today, click here.

For a list of this week’s economic reports due out, click here.

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Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/federal-reserve-meeting-center-stage/.

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