Wall Street To Open Moderately Lower

Despite the Russian announcement that they are withdrawing troops from the Ukrainian border, the tension is still on. Ukraine has not verified the claim of withdrawal of troops to the base camps.

On Russia’s withdrawal announcement yesterday, tension was diffused to a certain extent. However, investors are watchful of the situation there.

Reports on retail sales, industrial production, and homebuilder confidence might get special attention on Wednesday along with the minutes of the latest Federal Reserve meeting.

Early signs from the U.S. Futures Index suggest that Wall Street might open mostly lower.

Asian shares finished mostly higher, while European shares are trading broadly up.

As of 7.05 am ET, the Dow futures were falling 46.00 points, the S&P 500 futures were sliding 4.00 points and the Nasdaq 100 futures were down 3.00 points.

The U.S. major averages finished the session near their best levels of the day. The Dow jumped 422.67 points or 1.2 percent to 34,988.84, the Nasdaq spiked 348.84 points or 2.5 percent to 14,139.76 and the S&P 500 surged 69.40 points or 1.6 percent to 4,471.07.

On the economic front, the Retail Sales for January will be published at 8.30 am ET. The consensus is for 2.0 percent, while it was down 1.9 percent in December.

The Labor Department’s Import and Export Prices for January will be released at 8.30 am ET. The consensus is for 1.3 percent, while it was down 0.2 percent in the previous month.

The Fed Industrial Production for January will be issued at 9.15 am ET. The consensus is for an increase of 0.4 percent, while it was down 0.1 percent in the prior month.

The Commerce Department’s Business Inventories for December will be published at 10.00 am ET. The consensus is for an increase of 1.8 percent, while it was up 1.3 percent in the previous month.

The National Association of Home Builders’ Housing Market Index for February will be revealed at 10.00 am ET. The consensus is for 83, while it was at 83 in the prior month.

Atlanta Fed Business Inflation Expectations for February will be released at 10.00 am ET. In the prior month, the inflation expectations were up 3.4 percent.

The Energy Information Administration or EIA’s Petroleum Status Report for the week is scheduled at 10.30 am ET. In the prior week, the Crude Oil Inventories were down 4.8 million barrels, and the gasoline Inventories were down 1.6 million barrels.
Twenty-year Treasury Bond auction will be held at 1.00 pm ET.

The Federal Open Market Committee or FOMC minutes will be issued at 2.00 pm ET.

Asian stocks ended broadly higher on Wednesday.

Investors awaited minutes of the Federal Reserve’s January meeting due later in the day amid increasing chances that the Fed will raise interest rates by 50 basis points in March.

Chinese shares rose. The benchmark Shanghai Composite index inched up 19.74 points, or 0.57 percent, to 3,465.83. Hong Kong’s Hang Seng index jumped 363.19 points, or 1.49 percent, to close at 24,718.90.

Japanese shares climbed on the day. The Nikkei average soared 595.21 points, or 2.22 percent, to 27,460.40, while the broader Topix index closed 1.67 percent higher at 1,946.63.

Australian markets posted strong gains. The benchmark S&P/ASX 200 index climbed 78 points, or 1.08 percent, to 7,284.90, while the broader All Ordinaries index ended up 82.70 points, or 1.10 percent, at 7,573.

European shares are trading mostly higher. Among the major indexes in the region, the CAC 40 Index of France is progressing 1.34 points or 0.02 percent. The German DAX is losing 1.19 points or 0.01 percent, the U.K. FTSE 100 Index is sliding 19.41 points or 0.26 percent.

The Swiss Market Index is adding 25.25 points or 0.21 percent.

The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is up 0.066 percent.

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