Stock Futures Waver as Investors Go On Bernanke-Watch
NEW YORK ( TheStreet) -- Stock futures were wavering Wednesday as investors await the conclusion of the Federal Reserve's two-day meeting and possible signals about the direction of the central bank's bond-buying stimulus program.
Futures for the S&P 500 were falling 1.25 points, or 0.96 points below fair value, to 1,644.
A Birinyi Associates report showed that the S&P 500 is lower 62% of the time for an average loss of 39 basis points the day after a Federal Open Market Committee meeting. Meantime, the market rises on FOMC days 62% of the time for an average gain of 0.37%, according to the report.
The FOMC meeting is expected to issue its latest economic projections at 2 p.m. New York time followed by a news conference with Fed Chairman Ben Bernanke at 2:30 p.m.
According to economists polled by Bloomberg, the consensus expectation is that the Fed will continue purchasing $85 billion of securities each month. However, the median estimate indicates an expectation that tapering could begin at the Oct. 29-30 meeting with buying being cut to $65 billion a month.
A departure from the Fed Funds rate range of 0 to 25 basis points is not expected by the economists polled by Bloomberg. The last time rates were adjusted was on Dec. 16, 2008, when the central bank lowered the benchmark interest rate to near-zero levels.
Software maker Adobe Systems
Revenue fell 10% to $1.01 billion. Wall Street expected Adobe to post earnings of 33 cents a share on revenue of $1.01 billion. Adobe said revenue from subscriptions jumped 60% in March through May from a year earlier, to $254.5 million.