More gains ahead for U.S. stocks as Fed policy meeting kicks off

Wall Street

Futures climb higher

U.S. stock futures were pointing to a more gains on Tuesday as market participants await the start of the Federal Reserve’s Open Market Committee meeting later today.

The meeting is scheduled to conclude on Wednesday, when the central bank is expected to reveal its latest decision on monetary policy.

Analysts largely expect Fed chairman Jerome Powell’s press briefing, set to take place at the end of the meeting tomorrow, to include comments that strike a cautious tone on the pace of the economic recovery amid the ongoing coronavirus pandemic.

As of 6:00 a.m. ET, futures tied to the blue-chip Dow indicated a gain of 184 points, or 0.66% to 28,055. The S&P 500 futures added 24.18 points, or 0.72% to 3,396.38 while the tech-heavy Nasdaq 100 futures jumped 107 points, or 0.95% to 11,373.

Adobe, FedEx earnings on tap

FedEx (NYSE: FDX) is expected to report quarterly earnings of $2.66 per share on sales of $17.55 billion after market closes today. Shares of the package shipping giant were up 1.02% to $238.75 each in pre-market trading session Tuesday.

Adobe (NASDAQ: ADBE) will also publish its financial results after the closing bell. Analysts expect the software maker to report earnings of $2.41 per share on sales of $3.16 billion. Shares of the company rose 1.36% to $492.50 apiece in pre-market trade.

SEC investigating Nikola over short-seller’s claims

Nikola (NASDAQ: NKLA) has confirmed that the U.S. Securities and Exchange Commission (SEC) is investigating it following a report last week from short-seller Hindenburg Research, which accused the electric-vehicle maker of intricate fraud and deception by overstating the capabilities of its trucks.

“On September 11, Nikola’s legal counsel proactively contacted and briefed the U.S. Securities and Exchange Commission (SEC) regarding Nikola’s concerns pertaining to the Hindenburg report. Nikola welcomes the SEC’s involvement in this matter,” a spokesperson for Nikola was quoted by Business Insider as saying.

Nikola has denied the claims, accusing Hindenburg of making misleading statements that were designed to manipulate its shares. As of this writing, Nikola stock was down 5.50% to $33.82 a share in the pre-market trade.