US markets opened lower as expected, but then proceeded to climb upwards where the large caps are showing green and the small caps are a half percentage point down. Crude prices have stabilized in the low 32's and volume is dropping off to almost anemic levels as investors await the FOMC report at 2 pm.
Here is the current market situation from CNN Money
North and South American markets are broadly higher today with shares in Brazil leading the region. The Bovespa is up 2.55% while Mexico's IPC is up 0.69% and U.S.'s S&P 500 is up 0.27%.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
(Reuters) - Apple Inc shares fell as much as 6 percent on Wednesday after the company reported its slowest-ever rise in iPhone shipments, with an uptick likely only after the expected launch of iPhone 7 in September.
MOSCOW (Reuters) - Russian officials have decided they should talk to Saudi Arabia and other OPEC countries about output cuts to bolster oil prices, the head of Russia's pipeline monopoly said on Wednesday, remarks that spurred a sharp rise in prices.
MILAN (Reuters) - Fiat Chrysler Automobiles (FCA) raised the financial targets of its turnaround plan on Wednesday following a better-than-expected performance in North America and Europe and strong sales of its Jeep SUVs.
NEW YORK (Reuters) - Oil futures surged 5 percent on Wednesday, after Russia said co-operation with major oil producers was discussed and U.S. data showed a surprise spike in demand for products such as heating oil last week, when a massive blizzard hit the country.
BRUSSELS (Reuters) - The European Union sought sweeping powers over national car regulations on Wednesday, aiming to prevent a repeat of Volkswagen's emissions test cheating scandal and sparking a tough debate as governments and industry resist change.
WASHINGTON (Reuters) - New U.S. single-family home sales surged in December to their highest level in 10 months, the latest indication that the housing sector remains on a firmer footing despite a massive stock market sell-off and slowing economic growth.
We should mention right from the outset that recent data releases - weak as most of them were - are still not confirming an imminent recession with certainty. The situation remains a bit fuzzy: we see a lot of weakness in important data, and considering the overall picture - which includes what is happening globally - we can infer that the likelihood of a significant economic downturn this year is extremely high, but it's not inevitable. While it is still possible that a recession can be dodged this year, that seems a low probability outcome by now.
Last week the government has updated the gross output (GO) per industry data, which means we now have the picture until the end of Q3 2015. In terms of GDP, Q3 wasn't much to write home about either (2% real), and we can see from GO that there has been weakness in quite a few business areas. The parts of the economy that are responsible for the bulk of wealth creation didn't really do all too well. Our suspicion that the trends observed in the Q2 gross output data would continue has been confirmed - and in all likelihood, Q4 will once again show weakness. Below we compare the y/y change rates of selected gross output data to those of new orders for capital goods and industrial production.
As Federal Reserve officials prepare to release interest-rate guidance Wednesday, investors are bracing for the dollar to renew its rise against America's major trading partners and intensify unrest throughout the world's financial markets.
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