Stock futures were little changed as investors eagerly await Fed meeting minutes

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City on December 9, 2021.

Brendan McDermid | Reuters

U.S. stock futures were little changed on Tuesday night as investors eagerly awaited the minutes of the Federal Reserve meeting for clues on the pace of future interest rate hikes.

Dow Jones Industrial Average futures rose 14 points, or 0.05%. S&P 500 futures gained 0.03%, while Nasdaq 100 futures fell 0.06%.

Nordstrom shares fell more than 8% in extended trading after the department store chain reaffirmed its guidance. However, Nordstrom beat earnings and sales expectations in its latest results, according to consensus expectations on Refinitiv.

The Dow Jones Industrial Average rallied nearly 400 points, or about 1.2%, in Tuesday’s regular session. The S&P 500 rose 1.36%, closing above the 4,000 level for the first time since September. Meanwhile, the Nasdaq Composite jumped 1.36%.

Investors shrugged off fears of further shutdowns in China after the country reported its first Covid deaths since May. Instead, traders focused on strong earnings reports and bet on the likelihood of Fed monetary policy easing going forward.

“Investor psychology that remains bullish is driving the recovery in this market,” Eugene Profit, CEO of Profit Investments, said on CNBC’s “Closing Bell: Overtime” on Tuesday.

“As we approach the next Fed meeting, I think the Fed will probably tone down its language a bit, and I think investors want to stay bullish and ignore a lot of headwinds in this market,” he said. added.

On the economic front, investors will review the latest minutes from the Fed’s meeting on Wednesday to get a glimpse of the central bank’s approach to monetary policy ahead of the December meeting.

Earlier in November, the central bank approved a fourth straight 0.75 percentage point hike that took rates to their highest level since 2008. Economists forecast a half-percentage-point hike in December and lower rate hikes next year.

Additionally, investors will analyze the latest unemployment claims data. Economists polled by Dow Jones forecast claims of 225,000 for the week ending November 1. 19, a slight increase from the initial 222,000 requests the previous week.

They are also awaiting the latest data on durable goods and new home sales in October. Durable goods in October are expected to have risen 0.5% from the previous month, according to Dow Jones estimates.

Markets will be closed Thursday for the Thanksgiving holiday and close early Friday.

Correction: A previous version of this story has been corrected to reflect that Nordstrom reaffirmed its forecast.

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