Major indexes higher in the early going as oil prices fall. Investors await the Fed's rate decision and comments.
The sentiment on Wall Street appeared to be better Tuesday as investors
awaited the Federal Reserve's decision on interest rates.
The central bank is widely expected to leave its key fed funds rate
unchanged at 2% when it announces its decision at 2:15 pm ET.
But investors will likely pay close attention to the Fed's statement, which may contain clues regarding future rate hikes.
Central bankers are in a bind when it comes to interest rates. The Fed
cut rates to help spur economic activity, which remains relatively
sluggish, but rising prices have put pressure on the central bankers to
increase rates to curb inflation.
Crude prices continued to ease. Light, sweet crude for September delivery fell 93 cents to $120.48 a barrel in electronic trading.
The nation's service-oriented businesses remained in contraction in
July, although by not as much as the month before, according to the
Institute for Supply Management.
The ISM, a trade group of purchasing managers, said its reading of the
service sector was 49.5 in July, up from 48.2 in June. That's better
than economists' prediction of a reading of 48.7, according to the
consensus estimate of economists.
A reading below 50 signals contraction, while a reading above 50 indicates growth.
Procter & Gamble said fourth-quarter profit soared 33%, thanks to price increases, overseas sales and tax benefits.
On the down side, Archer Daniels Midland said fiscal
fourth-quarter profit was hurt by higher commodity prices. The
industrial agriculture company said profit fell 61% to 58 cents per
share.
Cisco Systems and News Corp. are slated to release results after the closing bell.
Gold prices tumbled $14.50 to $893.40 an ounce in New York.