U.S. Stock Futures Pointing To A Strong Opening — At Least For Now

U.S. Stock Futures Pointing To A Strong Opening — At Least For Now

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U.S stock futures are pointing to a fairly strong opening and rebound this morning as investors await the 2pm EDT announcement from U.S. Federal Reserve Chairman, Janet Yellen — who will have a 2:30pm EDT news conference. She is expected to “tweak the language in its statement by removing the phrase “considerable time,” a reference to how long the Fed intends to keep interest rates at zero. Patti Domm, writing on CNBC’s website this morning, notes the Fed has said it has been on a path to raise rates by the middle of 2015, if the economy continues to improve. The ‘considerable time’ language is therefore seen as irrelevant; and, the Fed is expected to include some new language, stressing it is not likely to move quickly to raise rates. Some Fed watchers expect to see a new word — “patience.”

All things being equal, the market will probably rally in the aftermath of the Fed announcement; and the bulls have history on their side as we usually see a “Santa Claus” rally in stocks into the end of the new year. But, this isn’t your normal situation with so much uncertainty with respect to Russia and falling oil prices. Both Brent Light Sweet Crude and West Texas Crude are trading lower this morning. If we can find a bottom in oil, and sustain some level near $60; and, then move higher — the market wants to rally. We’ll see. V/R RCP

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