RTTNews - US stocks were poised for a lackluster start Wednesday morning in New York following modest gains in the previous session. The markets were in wait and see mode ahead of comments from Fed Chairman Ben Bernanke and a key reading on private sector payrolls.
As of 6 am ET, the Dow Futures were down 40 points, the NASDAQ Futures were down 5 points, and the S&P Futures were down 6 points.
Trading on Wednesday is likely to be impacted by private payroll processor ADP's employment data, the Institute for Supply Management's report on activity in the service sector and factory orders data from the Commerce Department, all covering the month of May.
Bond market players will also look to another quantitative easing move from the Federal Reserve Wednesday morning. The New York arm of the Fed will purchase treasuries set to mature between May of 2016 and May of 2019. The buyback is set to begin at 10:15 a.m. ET.
Traders will also look to testimony from Federal Reserve Chief Ben Bernanke, who is scheduled to testify before the House Budget Committee in Washington on the current economic climate. The testimony is set to begin at 10:00 a.m. ET.
A U.S. Court on Tuesday has reportedly agreed to hear an appeal in connection with Chrysler's sale of most of its assets to a group led by Fiat SpA ADS of Italy (FIATY.PK).
The second U.S. Circuit Court of Appeals in New York said it would hear a request by a group of Indiana pension funds challenging the sale of assets and the arguments are supposed to begin on June 5, 2009, according to the court's order, said the Wall Street Journal.
The U.S. Senate Commerce Committee will hold a hearing on GM (GMGMQ) and Ford (F) at 2:30 p.m. ET. GM's Fritz Henderson and Chrysler's Jim Press will appear along with dealers.
GM confirmed Tuesday that China-based Sichuan Tengzhong Heavy Industrial Machinery Co. the buyer of its Hummer brand.
Meanwhile, a House financial services subcommittee will discuss the future of Fannie Mae and Freddie Mac.
The ongoing slump in the housing market may claim another victim, as analysts are expecting U.S. Luxury homebuilder Toll Brothers Inc. (TOL: News ) to report a loss of $0.44 per share for the second quarter. The company is scheduled to report financial results for the second quarter before the market opens today.
Tuesday, Valero Energy Corp. (VLO) said that it expects a net loss for the second quarter, due to the extended downtime at its Delaware City and McKee refineries and by the continuation of weak sour crude oil discounts and lower diesel margins. Further, the company said it plans to offer 40 million shares of its common stock.
Asian stocks continued to grind out gains Wednesday, while European stocks lagged a bit in early dealing. The price of oil pulled back slightly to $68 a barrel as the dollar saw some strength versus other majors.
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