Dow Jones, Nasdaq waver before Fed meeting and Big Tech earnings

Apr. 28, 2021 6:41 AM ETSPDR Dow Jones Industrial Average ETF (DIA), QQQ, SPYBy: Yoel Minkoff, SA News Editor3 Comments
  • Major averages traded around the flatline on Tuesday, and similar sentiment was seen overnight. Dow and Nasdaq futures dipped 0.2%, while contracts linked to the S&P were marginally higher. Traders appear to be in wait-and-see mode before the big Fed meeting today and the latest slew of corporate earnings.
  • "Any clues offered in the board’s statement or in the subsequent press conference about potential QE tapering - when and how fast - would likely move both the stock and bond markets," Leuthold Group chief investment strategist Jim Paulsen declared. "Many FAANGs are [also] reporting this week and the stock market may wait until some of these key reports are out before deciding on its next major direction."
  • Others think Powell has the potential to rattle Wall Street if he sounds too hopeful. "The markets may end up reading too much into his optimism and not enough into the need for patience to see more data come through," said Morgan Stanley's Matthew Hornbach. "I'm expecting the chairman to frame it in that way. Great data, we just need a lot more of it."
  • Other items on the calendar today include some high-profile earnings from manufacturing heavyweights like Boeing and Ford, as well as Big Tech names like Apple and Facebook. At 9 p.m. tonight, President Biden will also unveil his "American Families Plan" at a joint address to Congress. Expectations of massive stimulus and a booming economy have helped propel the stock market since Biden took office and has even resulted in the hottest 100-day performance since the 1950s. While there are many factors that go into market movement, the S&P 500 has risen 24.1% since Election Day 2020.

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