Fed meeting in focus
U.S. stock futures pointed to a positive open on Tuesday ahead of the much-anticipated two-day Federal Open Market Committee (FOMC) meeting, which will kick off later in the day.
By 5:30 a.m. ET, the blue-chip Dow futures were up 260 points, or 1.08% to 24,259. S&P 500 futures advanced 27.38 points, or 0.95% to 2,896.38 while the tech-heavy Nasdaq 100 futures indicated a gain of 92 points, or 1.04% to 8,916.25.
While the Federal Reserve is not expected to make any changes to its benchmark interest rate following the meeting, close attention will be paid to the central bank’s language.
The Fed recently cut interest rates to near zero in two emergency moves aimed at cushioning the American economy against the negative effects of the COVID-19 pandemic. Policymakers also launched a slew of liquidity and lending programs to calm financial markets.
Earnings barrage continues
More quarterly earnings are on the way today with a menu that features Southwest Airlines (NYSE: LUV), PepsiCo (NASDAQ: PEP), 3M (NYSE: MMM) and Google-parent Alphabet Inc (NASDAQ: GOOGL).
Southwest Airlines, PepsiCo, 3M, Caterpillar (NYSE: CAT), United Parcel Service (NYSE: UPS), Pfizer (NYSE: PFE) and Harley-Davidson (NYSE: HOG) will publish their reports before the market open.
Alphabet, Ford (NYSE: F), Advanced Micro Devices (NASDAQ: AMD) and Starbucks (NASDAQ: SBUX) are scheduled to report after the closing bell.
More states begin easing lockdowns
Meanwhile, Ohio and Texas have joined other U.S. states beginning to take steps to lift COVID-19 lockdowns and reopen their shuttered economies.
Texas Gov. Greg Abbott announced Monday that the state will permit museums, retail stores, malls, restaurants, libraries and movie theaters to open this Friday at 25% capacity.
Governor Mike DeWine of Ohio said the state will slowly start opening from the coronavirus shutdown in phases beginning May 1.
Tennessee, South Carolina, Colorado, Georgia, Mississippi, Oklahoma, and Alaska have already allowed some businesses to resume after a month of stay-at-home orders.
