Nervousness characteristic of a session encompassing the Fed decision is palpable, with the trading in the major U.S. index futures pointing to a slightly lower opening on Wednesday. Among the global markets, Asian stocks closed mostly lower, while the mood across the Atlantic is also jittery amid the release of some mostly positive domestic earnings. Commodities are seeing weakness even as the dollar trades mostly higher. Apart from earnings from companies, including Baidu (BIDU), Humana (HUM), Mastercard (MA) and Starwood Hotels (HOT), the domestic markets may also focus on a key reading on first quarter GDP growth and pending home sales. Nevertheless, the FOMC announcement could have the final say in how the markets move about in the session.
At 6:15 am ET, the Dow futures are slipping 13 points, the S&P 500 futures are moving down 2.25 points and the Nasdaq 100 futures are slipping 8.50 points.
U.S. stocks closed a volatile session on Tuesday on a mixed note, as traders digested mixed earnings and weak consumer confidence reading, which strengthened hopes of a dovish stance from the Fed.
On the economic front, the Commerce Department is scheduled to release its advance first quarter GDP report at 8:30 am ET. Economists expect first quarter GDP to slow to 1 percent quarter-over-quarter.
The National Association of Realtors is due to release its pending home sales index for March at 10 am ET. The consensus estimate calls for a 1 percent month-over-month increase in the pending homes sales index for the month. The Energy Information Administration will release its weekly petroleum status report for the week ended April 24th at 10:30 am ET. The Treasury is set to announce the results of its auction of 7-year notes at 1 pm ET.
The FOMC is scheduled to release its monetary policy statement following the conclusion of its 2-day meeting at 2 pm ET. Economists expect the fed funds target rate to be unchanged at 0-0.25 percent and no major change in the language, although the Fed is expected to acknowledge the recent softening of growth.
In corporate news, Twitter (TWTR) reported better than expected first quarter earnings, while its revenues missed expectations. The company also lowered its full year 2015 revenue guidance.
Akamai Technologies (AKAM) reported in line first quarter earnings and its revenues were ahead of expectations. Kraft Foods (KRFT) reported first quarter earnings that beat estimates. Wynn Resorts' (WYNN) first quarter results trailed estimates and it also announced a cut to its dividend.
Western Digital (WDC) reported third quarter adjusted earnings and revenues that trailed estimates. GoPro (GPRO) announced an agreement to buy virtual reality company Kolor. Separately, the company reported better than expected first quarter results. Panera Bread (PNRA) reported below-consensus adjusted earnings and revenues for its first quarter but it reiterated its 2015 earnings per share growth guidance and company-owned comparable net bakery-café sales growth guidance.
Baidu.com (BIDU), CACI International (CACI), Charles River (CRL), Emulex (ELX), Flextronics (FLEX), Lincoln National (LNC), Manitowoc (MTW), Marriott (MAR), Murphy Oil (MUR), Riverbed Technology (RVBD), Terex (TEX), Unum Group (UNM), Williams Companies (WMB) and XL Group (XL) are among the companies due to release their quarterly results after the close of trading.
Most Asian markets ended lower, as apprehension ahead of the FOMC decision forced traders to liquidate positions. The lackluster performance by Wall Street overnight did not help matters much. The Indonesian, Australian and Taiwanese markets fell the most, although the Japanese market was closed for a public holiday.
Australia's All Ordinaries opened little changed and declined steadily throughout the session before ending down 103.30 points or 1.74 percent at 5,818. The market witnessed broad based weakness, with financial, healthcare and IT stocks declining sharply in the session. Hong Kong's Hang Seng Index ended at 28,400, down 42.41 points or 0.15 percent, while China's Shanghai Composite edged up 0.41 points or 0.01 percent before ending at 4,477.
In major corporate news from the region, South Korea's Samsung reported a decline in its first quarter profit, hurt by sagging smartphone sales and intense competition. The company also predicted sequential growth in overall earnings.
After opening higher, European stocks saw some volatility in early trading. After retreating below the unchanged in early trading, stocks have clawed back their losses and are currently modestly higher.
In corporate news, Volkswagen reported higher profits for its first quarter, helped by cost cuts and recovery in demand in Europe. Peugeot Citroen also reported higher first quarter profits, as it banked on pricing growth to counter weaker volumes. Swiss engineering giant ABB reported better than expected first quarter profits. Thanks to cost cuts, Germany's Software AG reported forecast beating earnings for its first quarter.
Meanwhile, British American Tobacco reported lower revenues for its first quarter. Barclays (BCS) announced that it would set aside an incremental 1 billion pounds for forex-related settlements and posted a decline in its quarterly profits.
On the economic front, a report released by the Nationwide Building Society showed that house prices in the U.K. rose at the fastest pace since June 2014. House prices were up 1 percent month-over-month in April. Annually, house prices were up a faster 5.2 percent. Data released by the European Central Bank showed that M3 money supply rose 4.6 percent year-over-year in March, faster than the 4.3 percent increase expected by economists.
The European Commission released the results of a survey showing that the economic confidence index for the eurozone edged down 0.2 points to 103.7 in April. The industrial confidence index deteriorated to -3.2 from 2.9 and the consumer confidence index fell 0.9 points to -4.6, while the business sentiment index improved to 0.32 from 0.23.
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