This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: All Eyes on Ben

UBS is anticipating a change in the language of the policy statement, specifically saying it believes the Fed will acknowledge increased risks to its outlook and hint that it's willing to do more if the recent softness in the economic data continues or the situation in Europe worsens substantially. The firm allowed that an extension of Operation Twist is possible then offered up three reasons why it believes "outright balance sheet expansion" is unlikely.

"First, some members who may support easier conditions in the near term remain concerned about the overall size of the Fed's balance sheet and its impact on the eventual exit strategy," UBS said. "Secondly, balance sheet expansion would be negative for the dollar and, as such, an easing program that weakened the dollar would likely create concern within the Fed that it might add to Eurozone stress. Finally, balance sheet expansion would be considered to be more inflationary due to the currency impact and the risk it might drive a rebound in commodity prices that would further pressure US consumers."

Given the build-up, it seems reasonable to assume that the Fed will at least rationalize sticking with Operation Twist a bit longer, if only to maintain status quo on the home front while so much uncertainty is still swirling abroad.

As for Wednesday's scheduled news, Bed, Bath & Beyond (BBBY - Get Report) is reporting its fiscal first-quarter results before Wednesday's opening bell, and the average estimate of analysts polled by Thomson Reuters is for a profit of 84 cents a share in the May-ended period on revenue of $2.25 billion.

Shares of the Union, N.J.- based home products company, which were already up more than 25% so far in 2012, hit a new 52-week high of $75.84 during Tuesday's session before closing at $74.72.

The company has beaten the consensus view in eight straight quarters, delivering an average upside surprise of 11.3%, but the sell side has its shares of doubters with 13 of the 28 analysts covering the stock at either hold (12) or underperform (1), and the 12-month median price target at $75.50.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ADBE $78.32 1.39%
BBBY $62.30 0.48%
AAPL $110.37 -1.75%
FB $88.15 -1.94%
GOOG $606.25 -1.32%

Markets

Chart of I:DJI
DOW 16,374.76 +23.38 0.14%
S&P 500 1,951.13 +2.27 0.12%
NASDAQ 4,733.4970 -16.4820 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs