Barron's | Stocks Futures Edge Higher Ahead of Fed Meeting

By Emily Dattilo

U.S. stock futures were rising slightly Monday as earnings season continued ahead of the Federal Reserve meeting later this week.

Futures on the Dow Jones Industrial Average rose 19 points, or 0.1%, while S&P 500 futures gained 0.1%, and futures tracking the Nasdaq Composite added 0.2%.

“Earnings season so far has been a mixed bag with big misses and lowered guidance and big earnings beats, which strengthens the idea that the market's recent gains are being driven by sentiment rather than fundamentals,” wrote James Demmert, chief investment officer at Main Street Research.

“The recent market rally works against the Fed's desire to reduce liquidity so hawkish commentary may help them take the exuberance out of the market,” he added.

And indeed, the futures market is pricing in a nearly 100% chance of a rate hike at the next Federal Reserve meeting on July 26, according to the CME FedWatch Tool.

Read the article here.

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