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US STOCKS-Wall St set for slightly lower open ahead of Fed minutes

Published 04/07/2021, 08:56 PM
Updated 04/07/2021, 09:00 PM
© Reuters.
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(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window.)
* Shares of energy firms, cruise operators rise
* Prison operator GEO tumbles on dividend suspension
* Fed minutes to be release at 2 p.m. ET
* Futures: Dow, S&P and Nasdaq down about 0.1%

(Adds comment, details; updates prices)
By Shivani Kumaresan and Medha Singh
April 7 (Reuters) - Wall Street's main indexes were set to
dip at open on Wednesday as investors cautiously awaited minutes
from the Federal Reserve's last meeting that could offer clues
on the central bank's views on inflation and an economic
recovery.
Massive fiscal stimulus and swift vaccinations prompted
several Fed officials at the meeting last month to project
interest rate increases as early as next year, opening up a gap
with those who do not see rates rising until 2024 at the
earliest. "The only thing that could move markets would be a surprise
in the minutes regarding the discussion of raising rates," said
Paul Nolte, portfolio manager at Kingsview Asset Management in
Chicago.
"At this point nobody is anticipating that."
A strong monthly payrolls report, which helped the S&P 500
hit its fourth consecutive record high on Tuesday, is only a
small step towards the central bank's threshold for considering
tapering its massive support for the economy.
Value stocks .RLV , which include economically sensitive
sectors, maintain a strong lead this year over their growth
.RLG counterparts, dominantly tech-related firms. However, a
resurgence in demand for tech stocks in recent sessions has
raised questions over the longevity of value trade.
The upcoming first-quarter earnings season and progress in a
multi-trillion infrastructure proposal could decide the path
forward for market.
"The earnings season should be pretty good as we are seeing
the economy reopen, jobs coming back ... the expectation is
increased guidance," Nolte added.
At 8:20 a.m. EDT, Dow E-minis 1YMcv1 were down 32 points,
or 0.1%, S&P 500 E-minis EScv1 were down 3.5 points, or 0.09%
and Nasdaq 100 E-minis NQcv1 were down 11.75 points, or 0.09%.
Shares of energy firms Chevron Corp CVX.N and Occidental
Petroleum OXY.N and cruise operators Norwegian Cruise Line
NCLH.N , Carnival Corp CCL.N and Royal Caribbean Cruises Ltd
RCL.N gained between 0.9% and 3.6% in premarket trading on
optimism about an economic reopening.
Prison operator GEO Group GEO.N fell about 10% after
suspending quarterly dividend payments. Shares of Ebon International EBON.O rose 5% after the
Chinese bitcoin mining machine maker responded to short-seller
Hindenburg Research's critical report.

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