US stocks are expected to remain caught between bouts of weakness and resilience today as investors await earnings from major tech companies. Market attention is focused on the interest-rate outlook following the previous day's FOMC meeting and on the economic indicators due to be released today.
In the previous day's New York market, the three major indices rose for a third consecutive session, with the Dow ending up $97 at $52,475. The S&P was firm, while the Nasdaq posted a small gain. The FOMC left rates unchanged, and some market participants took the view that comments from senior Federal Reserve officials were less hawkish than expected, with the market showing notable resilience late in the session. Trading was mixed as earnings announcements from major technology companies reached their peak.
Among the economic indicators scheduled for release today, the core PCE price index is expected to accelerate from the previous reading, while the advance GDP estimate for the July-September quarter is also expected to rise. If stronger domestic economic conditions are confirmed as expectations of an additional Federal Reserve rate hike in December spread, long-term interest rates are likely to rise, creating an environment more prone to selling. Meanwhile, some observers have pointed to the possibility that a decline in Alphabet's earnings could weigh on the market, while others expect a reassessment of Microsoft's performance to provide a catalyst for buybacks.
In after-hours trading, aggressive buying is expected to be restrained ahead of announcements from Amazon and Intel. Market participants are set to continue closely watching US stock futures and earnings developments at major companies today.