Wall Street Set To Open Moderately Positive

The testimony of Federal Reserve Chair Jerome Powell before the Congress might be the highlight on Wednesday. Fed’s Beige Book as well as earnings reports from major corporates also might get attention.

Initial signs from the U.S. Futures Index suggest that Wall Street might open higher.
Asian shares finished lower, while European shares are trading in negative.

As of 7.50 am ET, the Dow futures were adding 26.00 points, the S&P 500 futures were gaining 6.75 points and the Nasdaq 100 futures were progressing 69.50 points.

The major averages all finished the day in negative territory. The Dow slipped 107.39 points or 0.3 percent to 34,888.79, the Nasdaq fell 55.59 points or 0.4 percent to 14,677.65 and the S&P 500 dipped 15.42 points or 0.4 percent to 4,369.21.

On the economic front, the Labor Department’s Producer Price Index or PFI for June is scheduled at 8.30 am ET. The consensus is for an increase of 0.6 percent, while it was up 0.8 percent in the prior month.

The Atlanta Fed’s Business Inflation Expectations survey report for July will be issued at 10.00 am ET. In the prior month, the inflation expectations were up 3.0 percent.

The Energy Information Administration or EIA’s Petroleum Status Report for the week will be released at 10.30 am ET. In the prior week, the crude oil inventories were down 6.9 million barrels, while gasoline inventories were up 6.1 million barrels.

Federal Reserve Chairman Jerome Powell will testify on the Semiannual Monetary Policy Report to Congress before a virtual House Financial Services Committee hearing at 12.00 pm ET.

Minneapolis Federal Reserve Bank President Neel Kashkari will participate in panel on “Strategies for Targeting Federal Programs to Meet the Needs of AAPI (Asian Americans and Pacific Islanders) Communities and Increasing AAPI Visibility in Federal Data” before the virtual Urban Institute AAPI Visibility in Federal Data event at 1.30 pm ET.

The Beige Book, produced roughly two weeks before the monetary policy meetings of the Federal Open Market Committee, is expected at 2.00 pm ET.

Asian stocks fell broadly on Wednesday. Chinese stocks fell. The benchmark Shanghai Composite index fell 38.02 points, or 1.07 percent, to 3,528.50, while Hong Kong’s Hang Seng index ended down 175.95 points, or 0.63 percent, at 27,787.46.

Japanese shares fell today. The Nikkei average ended down 109.75 points, or 0.38 percent, at 28,608.49, while the broader Topix index slipped 0.23 percent to settle at 1,963.16.

Australian markets eked out modest gains. The benchmark S&P/ASX 200 index rose 22.60 points, or 0.31 percent, to 7,354.70, while the broader All Ordinaries index ended up 19.60 points, or 0.26 percent, at 7,631.80.

European shares are trading lower. Among the major indexes in the region, the CAC 40 Index of France is declining 13.49 points or 0.21 percent. The German DAX is losing 23.92 points or 0.15 percent, the U.K. FTSE 100 Index is sliding 31.35 points or 0.44 percent.

The Swiss Market Index is declining 52.63 points or 0.44 percent.

The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is down 0.081 percent.

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