Data Could Trump FOMC

An Fed Open-Market Committee meeting typically creates more anxiety in the markets than Tuesday's trade would suggest.

Ahead of Wednesday's policy decision, major averages were resilient in the face of a massive rebound in oil and natural gas prices, as well as some disappointing earnings guidance from economic bellwethers UPS(UPS Quote) and 3M(MMM Quote). Bonds reversed course and gained ground Tuesday, bucking a strong consumer confidence report and potential data land mines ahead, including Wednesday's advanced fourth-quarter GDP report.

The Dow Jones Industrial Average added 0.3% to close at 12,523.31, while the S&P 500 jumped 0.6% to close at 1428.82. The Nasdaq Composite gained 0.3%, to close at 2448.64.

UPS spent most of the day down, trading as low as $70.38 intraday, but finished well off of its lows, down 1.3% at $72.70. The company's full-year outlook fell short of analysts' expectations, and the company blamed a slowing U.S. economy for the glum view. 3M fell 5.4% after its CEO said moderating global economic growth is responsible for its soft earnings guidance.

Procter & Gamble(PG Quote) gave the market a strong earnings report and boosted is 2007 guidance, but its shares slipped 0.5% on the day. On the flip side, disability insurer UnumProvident's(UNM Quote) shares climbed 10.5% Tuesday on its strong earnings report and healthy guidance.

The government will release its fourth-quarter GDP estimate at 8:30 a.m. Wednesday. The consensus expectation is for growth of 3%. The markets will also digest the fourth-quarter employment cost index Wednesday morning. Analysts expect a 1% increase from the third quarter, when wages were rising at the strongest annual rate since the second quarter of 2002.