Futures Slip on Fed Stimulus Doubts
NEW YORK (TheStreet) -- Stock futures pointed to a weaker open Wednesday as investors questioned whether expected monetary stimulus measures from the Federal Reserve next week will be large enough to strengthen the recovery.
Futures for the Dow Jones Industrial Average were down by 42 points, or 37 points below fair value at 11,082. Futures for the S&P 500 were 6 points lower, or 5 points below fair value at 1177 and Nasdaq futures were off by 8 points, or 9 points below fair value.
Stocks finished Tuesday's session with slight gains as encouraging consumer data offset some disappointing earnings reports.On Wednesday, a Wall Street Journal report said the Fed is likely to purchase a few hundred billion dollars of U.S. Treasury bonds over several months to lower long-term interest rates and bolster the recovery. The estimate, which is lower than some figures that have been floating around -- and well below the $2 trillion of purchases the Fed enacted during the financial crisis, created some doubt among investors that measures will be large enough to be effective. The Mortgage Bankers Association said mortgage applications rose 3.2% on a seasonally adjusted basis in the week ended Oct. 22 while the refinance index increased 3% week-over-week. The Department of Commerce said durable goods orders rose 3.3% in September, outpacing the 1.8% increase that economists had expected, according to according to Briefing.com. That compares to a decline of 1% in August. Excluding transportation, orders fell 0.8%, missing expectations for a 0.2% uptick. New-home sales data for September will be released at 10 a.m. EDT. Economists anticipate sales to rise to 299,000, from 288,000, previously.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV