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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Stock Futures Mostly Lower Ahead of Fed Statement


NEW YORK (TheStreet) -- Stock futures were trading mostly lower Thursday as investors waited for the Federal Reserve to announce what it would do next to help support the U.S. economy.

Futures for the Dow Jones Industrial Average were declining 23 points, or 10.65 points above fair value, at 13,338. Futures for the S&P 500 were down more than 2 points, or 0.99 points above fair value, at 1437. Futures for the Nasdaq were behind by 7 points, or 2.08 points below fair value, at 2789.

"We expect the FOMC to announce a return to asset purchases and a move in the forward guidance for the funds rate to at least mid-2015 on Thursday," said researchers at Goldman Sachs.

"We expect the FOMC statement to issue a strong verbal easing by pushing the fed funds exit guidance from 'late 2014' to either mid- or late-2015 -- or it may be more directly tied to economic developments," said Joseph LaVorgna, chief U.S. economist at Deutsche Bank. "In addition, we also expect the Fed to announce another round of quantitative easing, which will likely include both Treasuries and MBS. Contrary to prior rounds of QE, we do not expect a fixed size or end-date to be announced, rather policymakers will pursue an adjustable, open-ended program which will be modified as economic conditions warrant."

The Federal Open Market Committee policy announcement is scheduled for 12:30 p.m. EDT.

U.S. stocks finished in positive territory Wednesday as investors mostly stood pat as the Fed kicked off its two-day policy meeting.

The Labor Department said Thursday that initial claims for the week ended Sept. 8 increased 15,000 to 382,000, up from the previous week's upwardly revised 367,000. Analysts were expecting jobless claims of 369,000.

The four-week moving average was 375,000, an increase of 3,250 from the previous week's revised average of 371,750.

Continuing claims in the week ended Sept. 1 were 3.283 million, a decrease of 49,000 from the preceding week's revised level of 3.332 million. Continuing claims were predicted by economists to have fallen to 3.3 million.

The Bureau of Labor Statistics said Thursday that the producer price index for finished goods rose by a seasonally adjusted 1.7% in August, more than the 1.2% that economists were expecting, after advances of 0.3% in July and 0.1% in June. August marks the largest monthly rise since June 2009.

The core figure increased 0.2%, as expected, after gaining 0.4% in July.

The FTSE in London was flat Thursday and the DAX in Germany was losing 0.35%. The Hong Kong Hang Seng index settled down 0.14% and the Nikkei in Japan finished up 0.39%.

The benchmark 10-year Treasury was rising 7/32, pushing the yield lower to 1.738%. The greenback was falling 0.07%, according to the dollar index.

October crude oil futures were up 16 cents at $97.17 a barrel and December gold futures were up 40 cents at $1734.10 an ounce.

On the corporate front, Apple (AAPL) shares settled higher following the unveiling of the tech giant's iPhone 5 at a media event in San Francisco on Wednesday.

Pier 1 Imports (PIR), the specialty retailer, said fiscal second-quarter earnings rose 58%. It also announced it was raising its full-year earnings guidance.

Dole Food (DOLE) is in advanced talks to sell its packaged foods and Asian fresh fruit and vegetable businesses to Japan's Itochu.

A report from the Nikkei business daily reported that Itochu may pay as much as $1.7 billion.

Dole shares rose almost 10% on Wednesday to $14.07.

Abercrombie & Fitch (ANF)has hired Goldman Sachs as it works to ward off pressure from investors because of its declining stock price, a source familiar with the matter told Reuters.




--Written by Andrea Tse in New York.



>To contact the writer of this article, click here: Andrea Tse.

Stock quotes in this article: ^DJI, ^GSPC, ^IXIC, AAPL, PIR, DOLE, ANF 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs