What Will The FOMC Say Tomorrow?

The markets are slightly positive in early trading. The FOMC meeting starts today, with the statement coming out tomorrow. While it is almost assured that the Fed will hold steady on rates, it is less clear what they will say about their bias and policy directive. I think it is likely that they will also hint at the economy gaining some strength, compared to previous statements where they alluded to an economic slowdown.

The 10-year yield is a bit lower this morning at 4.88%. Oil is trading higher, near $54.50, which is lending a bid to the energy complex.

Earnings reports were once again a mixed bag. While Q4 numbers continue to come in okay, corporate guidance for next quarter appears fairly subdued compared with recent quarters. But with the economy hanging in, I am not looking for a big dropoff in earnings growth.

In other news and notes:

• Asian markets rise overnight
• MMM down, hints at slowing global growth
• WFT beats by 3 cents
• Saudis to reduce oil output - WSJ
• CME misses EPS; stock down
• MBI misses by 16 cents
• LXK beats EPS; guides lower
• PG reports in-line results
• WYE misses by 5 cents
• CTXS added to Conviction List at Goldman
• UPS reports in-line, lowers guidance
• UBS raises TGT target to $78

long PG