U.S. markets await rate decision, get August reading on consumer inflation in Tuesday's session
September 16, 2003: 5:34 AM EDT
By Mark M. Meinero, CNN/Money Staff Writer
NEW YORK (CNN/Money) - The Federal Reserve's policy meeting will be the conversation piece for U.S. stock markets Tuesday, but investors also get a glance at consumer inflation figures for August.
At 5:20 a.m. ET, futures pointed to a higher open for the major indexes.
The Fed is expected to leave rates at their lowest level since the 1950s when policy makers meet. But what investors will be looking for is some hint as to whether rate hikes are imminent or a ways off. The Fed's decision and comments are expected around 2:15 p.m. ET.
Prior to Tuesday's open, the government issues its report on consumer prices, and it's expected to show inflation remaining in check. Prices are seen having risen 0.3 percent overall, up from 0.2 percent in July, according to a consensus of economists surveyed by Briefing.com. Excluding food and energy costs, the core CPI is seen rising 0.2 percent, matching the July figure.
Early Tuesday, a survey conducted by staffing company Manpower showed that a larger percentage of companies plan to hire workers in the fourth quarter than those companies planning to eliminate jobs. The survey is a signal of at least an easing in what many have called a jobless economic recovery.
The Dow Jones industrial average began the week with a 0.2 percent rise Monday. The Nasdaq composite index started off with a 0.5 percent retreat (see chart for details).
Asian-Pacific stocks ended mostly higher Tuesday, with Tokyo's Nikkei index up 1.6 percent. European markets began the day with gains. (Check the latest on world markets)
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Among U.S. stocks trading in Europe, shares of Ford Motor (F: Research, Estimates) were down 1 percent after the automaker reached a tentative contract agreement with the United Auto Workers. General Motors (GM: Research, Estimates), which is the last of the Big Three still in talks with the UAW, was up nearly 1 percent.
Treasury prices pulled back in early trading, sending the 10-year note yield up to 4.27 percent from 4.26 percent late Monday. The dollar lost ground against the yen, but was stronger versus the euro.
Brent oil futures advanced 9 cents to $26.56 a barrel in London, where gold was little changed.
Among the companies scheduled to report quarterly results before the markets open are cereal maker General Mills (GIS: Research, Estimates) and grocer Kroger. (KR: Research, Estimates)
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