Stock Futures Waver as Investors Brace for QE Tapering
NEW YORK ( TheStreet) -- Stock futures were wavering Wednesday as investors around the world debated the possibility of hints that the Federal Reserve could soon scale back its $85 billion a month bond-buying stimulus program in the latest release of its minutes amid some better economic data, particularly robust job gains in the cyclical sectors of the economy.
Futures for the S&P 500 were unchanged, or 1.02 points below fair value, to 1,645.5. Futures for the Dow Jones Industrial Average were rising 12 points, or 4.66 points above fair value, to 15,234. Futures for the Nasdaq were up 1 point, or 2.22 points below fair value, to 2,975.25.
Before the market open, the Mortgage Bankers Association said that mortgage application activity continued to drop in the wake of rising interest rates amid fears of less Fed support during the week ending July 5. The Market Composite Index decreased by 4% on a seasonally adjusted basis from one week earlier.
Both American International Group
Family Dollar Stores
Cliffs Natural Resources
The most important economic release so far this week will occur at 2 p.m., EDT, when the Federal Open Market Committee will issue the minutes from its June 18 to 19 meeting. Investors are expected to parse the release for any clues into the sentiment of Fed voting members regarding the tapering of stimulus and respond accordingly.