Filed under: Before the bell, Major movement, International markets, Deals, Goldman Sachs Group (GS), Economic data, Lehman Br Holdings (LEH), Bear Stearns Cos (BSC), Federal Reserve
Stock futures are higher this morning as investors await the Federal Reserve decision on interest rates today and some data on housing and inflation. As of 7:50 Dow futures were up 130 and NASDAQ futures were up 18.
The Federal Open Market Committee is scheduled to announce its decision at 2:15 EST. Investors are expecting a cut of as much as a full percentage point — to 2%.
Housing starts and building permits, due out at 8:30, have likely dipped in February compared to January.
The Producer Price Index, inflation at the wholesale level, is expected to increase, but after the unexpected flat CPI from Friday, we may be in for a surprise.
Goldman Sachs (NYSE: GS) and Lehman Bros. (NYSE: LEH) are also scheduled to report results this day and investors will be anxiously looking to gauge the condition of the financial sector generally following the collapse of Bear Stearns. Lehman’s shares fell almost 20% Monday amid fears it will be the next casualty of turmoil in the credit markets.
Meanwhile, the Bush administration has been working on two new initiatives aimed at creating more funding for mortgages by relaxing constraints on Fannie Mae (NYSE: FNM), Freddie Mac (NYSE: FRE) and the Federal Housing Administration, according to the Wall Street Journal. The Office of Federal Housing Enterprise Oversight is reportedly close to reducing an excess-capital requirement for Fannie and Freddie, thereby giving them more latitude to purchase and securitize loans. There are also moves to allow more people to qualify for mortgages insured by the FHA.
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