U.S. stock index futures pointed to a mixed start to trading on Thursday after the Federal Reserve kept interest rates unchanged.
At 7:59 a.m. ET, Dow Jones Industrial Average futures implied a drop of about 40.86 points at the open. Futures for the S&P 500 and Nasdaq 100 pointed to a slightly higher open.
On Wednesday, the Fed said it will be “patient” with raising rates moving forward. In a statement, the central bank said: “The Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate. ” The statement also dropped the word “gradual.”
The Fed addressed the balance sheet, which had been a concern for investors, in a separate statement. The Fed said it “is prepared to adjust any of the details for completing balance sheet normalization in light of economic and financial developments.”
Stocks shot up on the back of the statement, with the major indexes rising at least 1.55 percent on Wednesday. Those gains put the S&P 500 on track to post its best January performance since 1989. The broad index is up nearly 7 percent this month.
The central bank’s statement came in the middle of the busiest week of the earnings season. When the week is over, more than 100 S&P 500 companies will have reported earnings.
— RECOMMENDED —
Learn how to “Schedule Your Weekly Paycheck”
You deserve the opportunity to double that weekly paycheck of yours. With little time and minimal effort, come learn how my C.A.$.H system works!
On Thursday, General Electric posted weaker-than-expected earnings but its shares surged 7 percent on strong revenue. Facebook shares jumped nearly 12 percent in the premarket after the company reported better-than-expected earnings.
Amazon and Yum China are among the companies scheduled to report after the bell Thursday.
Investors also monitored a meeting between U.S. and China trade officials taking place in Washington. President Donald Trump said in a series of tweets Thursday that talks are going well between the two countries, noting “China does not want an increase in Tariffs and feels they will do much better if they make a deal. They are correct.” He also said, however, that no deal will be final until he meets with Chinese President Xi Jinping.
Back in the U.S., weekly jobless claims and an employment cost index are due at 8:30 a.m. ET, Chicago PMI data are due at 9:45 a.m., and new home sales data are expected at 10 a.m.
Source: cnbc.com | Original Link