FOMC Meeting, AMZN, and Oil Lead the Busiest Financial News Day in Months

Top financial news today, June 18, 2014: The Dow Jones Industrial Average rose marginally on Tuesday despite a swath of disappointing data, including higher inflation and poor housing numbers. Wednesday is gearing up to be one of the busiest news days in recent months for the financial markets.

Here's the financial news you need to know to make today profitable:

  • Financial newsToday's the Day: The Federal Reserve will announce at 2 p.m. its plan to manage interest rates, while Janet Yellen holds a press conference on the FOMC meeting at 2:30 p.m. Most investors do not expect any surprises from the June FOMC meeting. The central committee is likely to continue the taper of its bond-purchasing program by $10 billion to $35 billion per month. Meanwhile, the bank is expected to leave interest rates unchanged in an effort to spur more growth in the employment markets.
  • Sweetening the Deal: In an effort to appease French officials and beat its rivals in a bidding war, General Electric Co. (NYSE: GE) plans to increase its bid for the energy businesses of French engineering group Alstom, according to The Wall Street Journal. Alstom's board will make a decision by Monday between General Electric's bid and a joint offer between Germany's Siemens AG (OTCMKTS ADR: SIEGY) and Japan's Mitsubishi Heavy Industries.
  • The Big Reveal: During a company event in Seattle today, Amazon.com Inc. (Nasdaq: AMZN) Chief Executive Officer Jeff Bezos is expected to reveal the company's first smartphone. Little is known about the device, but tech experts believe it could feature a 3-D screen, among other innovative features. Yesterday, a number of media outlets reported that AT&T Inc. (NYSE: T) earned exclusive rights to provide service for Amazon's new smartphone.
  • Japan Reels: Economic conditions in Japan continue to deteriorate, despite continued policy support and central bank action. This morning, the Japanese exports to the U.S. and Asia plunged to their lowest levels in 15 months, with a 2.7% year-over-year decline in May. The news is especially concerning as Japan has relied on exports to bolster demand for its products in the wake of a national sales tax hike that has zapped domestic consumer activity.

  • Today's Economic Calendar: Today's schedule features the EIA Petroleum Status Report, the FOMC meeting announcement, and Janet Yellen's press conference in the mid-afternoon.
  • A Second Quarter Surge: Shares of Adobe Systems Inc. (Nasdaq: ADBE) surged more than 9.5% in after-hours trading last night, after the company beat Wall Street projections. The company's second-quarter adjusted earnings of $0.37 a share were ahead of $0.30 a share projected by analysts.
  • Back from the Dead: The island-nation of Cyprus will return to the public debt markets today, just a year after it required a massive bailout from the European Union and taxed its own citizens' deposits. The nation is trying to raise at least 500 million euros ($678 million) for five years. The bonds will likely yield approximately 4.9%, according to reports.
  • Earnings Reports: Stay tuned for earnings reports from Actuant Corp. (NYSE:
    ATU)
    , FedEx Corp. (NYSE: FDX), JTH Holding Inc. (NYSE:TAX), and Jabil Circuit Inc. (NYSE: JBL).

Full U.S. Economic Calendar June 18, 2014

  • MBA Purchase Applications at 7 a.m.
  • Current Account at 8:30 a.m.
  • EIA Petroleum Status Report at 10:30 a.m.
  • FOMC Meeting Announcement at 2 p.m.
  • FOMC Forecasts at 2 p.m.
  • Federal Reserve Chair Press Conference at 2:30 p.m.

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About the Author

Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.

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