U.S. stock futures edged lower as the Federal Reserve gets set to kick off its two-day interest-rate-setting meeting, with a profit warning from Ford Motor Co. the latest example of the supply chain woes still hitting companies.
What’s happening
-
Futures on the Dow Jones Industrial Average
YM00,
-0.41%
fell 53 points, or 0.2%, to 31064. -
Futures on the S&P 500
ES00,
-0.48%
dropped 11 points, or 0.3%, to 3906. -
Futures on the Nasdaq 100
NQ00,
-0.56%
decreased 51.5 points, or 0.4%, to 11973.
On Monday, the Dow Jones Industrial Average
DJIA,
rose 197 points, or 0.64%, to 31020, the S&P 500
SPX,
increased 27 points, or 0.69%, to 3900, and the Nasdaq Composite
COMP,
gained 87 points, or 0.76%, to 11535.
What’s driving markets
Monday’s market action was one without conviction, where stocks opened lower yet closed higher on the least volume since Aug. 29.
The next Federal Open Market Committee decision looms over the market, as investors grapple not just with whether the central bank will make a 75 basis point rate hike or lift rates by 100 points, but also how high the Fed will signal rates will go in the future. The meeting starts Tuesday and ends Wednesday.
The inflation problems are not limited to the U.S. Sweden’s Riksbank on Tuesday opted for a 100 basis point hike, and analysts expect at least a half-point rise when the Bank of England meets Thursday.
Ford
F,
late on Monday said inflation and parts shortages will leave it with more unfinished vehicles than expected and that payments to suppliers will be about $1 billion more than expected. Ford did nonetheless reiterate its full-year operating profit outlook.
Apple
AAPL,
meanwhile announced price rises to the app store in a number of Asian and European countries, likely a response to the surge in the U.S. dollar
DXY,
Housing starts data is due for release at 8:30 a.m. Eastern.
