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Jul 26, 2016

U.S. Stock Market Future Indications - July 26, 2016, by MarketWatch: U.S. Stock Futures Waver Ahead of Fed, Key Earnings

Sara Sjolin

U.S. stock futures struggled for direction on Tuesday, with investors opting for the sidelines ahead of the closely watched Federal Reserve meeting and a deluge of earnings, including updates from McDonald’s, Verizon and Apple.

Futures for the Dow Jones Industrial Average YMU6, -0.07%  slipped 4 points to 18,416, while those for the S&P 500 index ESU6, -0.12%  lost 1.20 points, or 0.1%, to 2,160. Futures for the Nasdaq 100 index NQU6, -0.05%  dropped 0.50 point to 4,653.25.
The muted action follows a downbeat session on Monday, when the S&P 500 index SPX, -0.30% and Dow average DJIA, -0.42%  ended 0.3% and 0.4% lower, respectively.
Investors are wary of making any big moves ahead of an interest rate decision from the Fed, due on Wednesday. The central bank kicks off its meeting on Tuesday, its first gathering since the U.K. on June 23 voted to leave the European Union.
Bernie Sanders and other high profile Democrats work to quell turmoil over leaked emails regarding the party’s outgoing chairwoman and resistance from Sanders backers. Will the party's message of unity stick? Photo: Getty
“The Fed is expected to remain on hold and to deliver a cautious accompanying statement given the rising political and economic risks following the Brexit vote,” said Ipek Ozkardeskaya, senior market analyst at London Capital Group.
“The expectations of a Fed rate hike by the end of the year have faded to zero. In contrary, the market is pricing in more than 50% chances for an interest rate cut in the U.S. by March 2017,” she added.
Read: What to expect in the Fed statement
Earnings deluge: Earnings are also a major factor on investors’ minds this week, with the busy lineup continuing on Tuesday.
DuPont DD, +0.66% , United Technologies Corp. UTX, -0.46%  , Reynolds American Inc. RAI, +0.04% , Caterpillar Inc. CAT, -0.87%  , McDonald’s Corp. MCD, -0.67%  and Verizon Communications Inc. VZ, -0.41%  are just some of the companies slated to report premarket.
Verizon was also in the news on Monday, when the telecom company said it’ll buy Yahoo Inc.’s YHOO, -2.69%  assets for $4.83 billion in cash.
After the market closes on Tuesday, Apple Inc. AAPL, -1.34% , Twitter Inc. TWTR, +1.52%  and Panera Bread Co. PNRA, +0.67% will report.
Economic news: The macro calender kicks off with Case-Shiller home prices for May, due at 9 a.m. Eastern Time, followed by the Markit services PMI for July at 9:45 a.m.
The consumer confidence index for July and a report on new home sales are slated for release at 10 a.m.
See: MarketWatch’s economic calendar
Other markets: The dollar DXY, -0.30%  against other major currencies and particularly took a dive against the yen USDJPY, -1.43%  ahead of the Bank of Japan meeting on Friday. Expectations that the central bank will launch more aggressive monetary easing have started to fade, sending the yen to its highest level against the greenback since mid-July.
Oil prices CLU6, -0.88% LCOU6, -0.54%  continued to lose ground, while gold GCQ6, +0.14%  rose 0.2% to $1,321.90 an ounce.
Asian stock markets mostly rose, although Japan closed lower. European markets SXXP, -0.24%   traded mixed.