Market Hustle: Futures Rise Ahead of Fed Meeting
NEW YORK (TheStreet) -- U.S. stock futures were gaining strength Tuesday as the markets digested a tempering of December tapering concerns coupled with confidence about the strength of the U.S. economic recovery.
- S&P 500 futures were up 2 points, or 3.26 points above fair value, to 1,782.25. Dow Jones Industrial Average futures were gaining 40 points, or 48.43 points above fair value, to 15,863 and Nasdaq futures were rising 4.3 points, or 5.91 points above fair value, to 3,474.3.
- The November consumer price index arrived flat Tuesday and the core CPI was up 0.2%. This evidence of tame inflation reinforces views that modest Fed tapering will start in January or March rather than December.
- The December National Association of Home Builders' housing market index will be out at 10 a.m. EST.
- The market has been taking rising taper talk in stride recently. U.S. stocks jumped Monday as stronger economic data offset concerns about the possibility of modest tapering starting in December.
- Rockwell Global Capital's New York-based chief market economist Peter Cardillo says: "The economic news from abroad combined with a string of good domestic news confirms the U.S. economy is on a roll, which is good news for stocks." He looks for the market to stay in a trading range of 1,736 to 1,800 and to hover around their highs amid fading tapering concerns and this week's options expiration. Year-end S&P 500 target: 1,935.
- Boeing BA was up 2.21% to $137.70 in premarket trading after the company said it would increase its stock buyback program by $10 billion and boost its quarterly dividend by about 50% to 73 cents a share from 48.5 cents. Facebook FB was higher by 1.86% to $54.81. It will begin selling video advertisements later this week, The Wall Street Journal reported.
-- Written by Andrea Tse in New York.
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