U.S. stock futures were lower early Tuesday ahead of the two-day Federal Reserve policy meeting. Meanwhile, oil climbed on supply concerns following further Nigeria unrest and new Iran sanctions and steadied above $137 a barrel. UPS (NYSE: UPS) also gave a profit warning.U.S. stocks ended almost flat Monday as the market digested some deal activity but remained concerned over oil prices with many investors staying on the sidelines ahead of the Fed meeting. Both the Dow industrials and the S&P 500 ended nearly the same as Friday with the Nasdaq Composite dropping 20 points, or 0.85%.
Economic releases today include June consumer confidence to be reported at 10:00 a.m. EDT. Consumer confidence probably fell this month to the lowest level in more than 15 years, meaning many will try to economize on their spending. The Case-Shiller report on April home prices also is on tap.
Mostly, though, investors will be concerned with the Fed's decision and statement Wednesday. While most on Wall Street believe the Fed will hold rates unchanged this time, many think the Fed will discuss a shift -- to some extent -- to focus more on inflation than the slowdown as well as hint at future rate hikes. The Fed's balancing act between trying to stimulate the economy while keeping inflation under check is becoming a more difficult task by the day.
Incorporate news, shipping company UPS (NYSE: UPS) lowered its earnings expectations for the second quarter due to slowing U.S. economic growth and high fuel costs. The new guidance for second quarter earnings per share is 83 cents to 88 cents, compared with the 97 cents to $1.04 the company originally anticipated. UPS shares were down about 3.5% in after-hours trading Monday following the announcement.
Earnings are due from Kroger (NYSE: KR), Jabil Circuits (NYSE: JBL) and 3Com (NASDAQ: COMS). General Electric (NYSE: GE) will be making a presentation at an alternative energy conference.
General Motors Corp. (NYSE: GM) announced Monday it plans to idle plants, raise prices on 2009 models by an average of 3.5%, and run a sale offering zero percent financing for up to 72 months to help clear out high inventories of 2008 pickups, sport utility vehicles and larger cars.
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