REUTERS-Wall Street looked
set for a second day of gains on Wednesday as oil prices edged up slightly, and
investors awaited the minutes of Federal Reserve's December
meeting in which it
raised interest rates.
The Fed cited
strength in the labor market and a slight uptick in inflation among reasons for
its move. Investors will pore over the minutes to assess policymakers' view on
the incoming administration.
The minutes of the
Dec. 13-14 meeting are expected at 2:00 p.m. ET.
With just over two weeks
left before President-elect Donald Trump takes office, investors are waiting
for the finer details of his proposed policies such as tax cuts and higher
fiscal spending.
Some analysts have
warned of a potential correction in a post-election rally, which has helped the
Dow Jones Industrial Average .DJI to
come within a hair's breadth of 20,000.
"I think the
market has gotten ahead of itself and is probably primed to give something
back," said Robert Pavlik, chief market strategist at Boston Private
Wealth.
"When it could
happen and how long it lasts depends on the new administration's ability to
pass some of the initiatives that they pushed for during the election."
The S&P 500 is
trading at 17.5 times forward 12-month earnings, well above the 10-year median
of 14.7 times, according to Thomson Reuters data.
Dow e-minis 1YMc1
were up 43 points, or 0.22 percent at 8:26 a.m. ET, with 16,031 contracts
changing hands. S&P 500 e-minis ESc1 were up 5.75 points, or 0.26 percent,
with 106,101 contracts traded. Nasdaq 100 e-minis NQc1 were up 10.75 points, or
0.22 percent, on volume of 12,897 contracts.
Automakers will
report U.S. sales for December and the full year. Encouraging data could push
the Dow to the elusive 20,000 mark. The Dow closed at 19,881.76 on Tuesday.
Wall Street ended
the first trading of the new year with sharp gains as increases in technology
stocks helped offset a decline in oil prices.
Oil, which hit an
18-month high on Tuesday before reversing course due to a strong dollar, was up
marginally at $55.67 on Wednesday.
The dollar fell to
profit-taking and was down 0.27 percent, a day after its index .DXY rose to a
14-year high.
Tesla (TSLA.O)
shares fell 1.2 percent to $214.50 premarket after the electric carmaker
reported a 9.4 percent decline in quarterly deliveries.
Agile Therapeutics (AGRX.O)
lost 64 percent of its value in heavy trading and is set to open at a record
low after the company provided an update on its contraceptive patch trial.
Depomed (DEPO.O)
soared 12.5 percent to $22.89 after the NY Post reported that KKR & Co was
still interested in buying the drugmaker.
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