Wednesday, December 19, 2012

Stocks are Shaky Ahead of Fed Decision

Stock futures dipped in pre-market trading as investors await a statement by the Fed around 2:15 p.m. following a two-day FOMC meeting. Although there’s not much room to lower interest rates, market-watchers are chatting about the possibility of an “Operation Twist”, wherein the Fed would sell short-dated government securities and buy securities with longer maturities.

Dow futures fell 26 points to 11,309; S&P 500 futures were off 3.6 points to 1,192.4.

Adobe Systems (ADBE) rose 5% and Oracle (ORCL) was up 4% after both tech companies beat earnings expectations late on Tuesday.

Two coal companies were falling after making disappointing projections: Alpha Natural Resources (ANR) was off 11% and Walter Energy (WLT) dropped 14%.

Beer company SABMiller (SBMRY) announced that it will buy Australia’s Foster’s Group (FBRWY) for about $10.2 billion. Both stocks, which trade on the pink sheets in the U.S., were up slightly.

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