Stocks Closed Lower Ahead Of This Afternoon's FOMC Announcement

Plus 5 Just-Added Strong Buys Stocks Closed Lower Ahead Of This Afternoon's FOMC Announcement [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Lower Ahead Of This Afternoon's FOMC Announcement [Stocks Closed Lower Ahead Of This Afternoon's FOMC Announcement]Image: Bigstock Stocks closed lower yesterday ahead of this afternoon's FOMC announcement. All of the indexes gave up -1% or more. In spite of that, they are all within striking distance of their 2023 highs. Position squaring ahead of this afternoon's FOMC announcement on rates dominated trading. As it stands now, the Fed is expected to raise rates one last time by 25 basis points, and then call it quits. That would put the Fed Funds rate at the 5.1% level they have been forecasting. After last month's inflation reports (CPI, PPI and PCE), which showed inflation on the decline, coupled with last week's Q1 GDP report which showed the economy growing, but by less than expected, that should provide the data points necessary for the Fed to see their rate hikes have been working. And enough confidence to pause given the lagged effects of the rate hikes. So the three things Fed watchers will be looking for today are 1) size of rate hike (assuming there is one), 2) will they pause after this one?, and 3) when are they expecting rate cuts? That last one is important too because the Fed has previously said they see the Fed Funds rate at 4.1% in 2024 and 3.1% in 2025. In other words, no rate cuts this year, but a -1% cut next year, and another -1% cut the year after that. Since some are still expecting the Fed to cut rates this year, the additional clarity will be interesting to see, and if it remains the same as last time. The Fed will make their announcement at 2:00 PM ET. And then at 2:30, Fed Chair, Jerome Powell will give his customary Press Conference. In other news yesterday, the Factory Orders report showed a 0.9% m/m increase, beating last month's -1.1% decrease, but missing the consensus for 1.3%. The Job Openings and Labor Turnover Survey report (or JOLTS for short) came in at 9.590 million vs. last month's 9.974M and view for 9.660M. Today we'll get MBA Mortgage Applications, the ADP Employment report, the PMI Composite report, and the ISM Services Index. We'll also get plenty of earnings reports with 447 companies set to report today. But the main event today will be the Fed. Note, that will shift back to earnings afterwards, and then to the Employment report on Friday. But first things first. Should be a busy week this week. 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