Tense Markets Await Fed Announcement

Updated from June 28

The major stock averages advanced Thursday ahead of the conclusion of the Fed meeting and an expected 25 basis point rate hike. The morning's economic data was in-line with expectations and did not sway the market from its pre-Fed rally.

"The market this morning shouldn't be taken any way," says Timothy Heekin, director of equity trading at Thomas Weisel Partners, adding that the FOMC meeting is just one of several cross-currents going on as the week comes to an end. There is the end of the quarter and the end of the half-year, the Russell rebalancing and the start of pre-announcements ahead of second-quarter earnings season. Heekin predicts stocks trade in a range through the summer without broad directional moves. He puts the S&P 500 in a range between 1245 and 1265.

As of mid-morning the S&P 500 was recently up 0.77% at 1255.62, the Dow Jones Industrial Average was up 0.64% to 11,043.60, and the Nasdaq was up 1% at 2132.91. ...