Germany’s Constitutional Court dismissed complaints on the legality of the European Stability Mechanism, a permanent bailout fund that’s expected to have a maximum lending capacity of €500 billion.
European markets are mixed and Asian markets ended higher, although they did close before the German ruling.
Apple is expected to announce iPhone 5 today with maybe a iPad mini. You know Apple should be a Dow stock. I wonder if they will add it this year to the Dow?
The Federal Reserve will likely announce a third round of bond purchases tomorrow according to analysts, while also extending the duration of its zero-interest-rate policy into 2015. The FOMC plans to release a statement tomorrow at about 12:30 p.m. after the two-day meeting. At 2 p.m. the Fed will release policy makers’ forecasts for unemployment, inflation and the expected path of the federal funds rate over the next several years. Bernanke plans to hold a press conference at about 2:15 p.m.
Earnings reports (estimates): UNFI-United Natural ($0.51).
0700 ET Weekly MBA mortgage applications, previous -2.5% with purchase sub-index -0.8% and refi sub-index -3.0%.
0830 ET Aug import price index expected +1.5% m/m and -1.4% y/y, July -0.6% m/m and -3.2% y/y.
0830 ET FOMC begins 2-day policy meeting.
0830 ET USDA WASDE crop report.
1000 ET July wholesale inventories expected +0.3%, Jun -0.2%.
1030 ET DOE Weekly Petroleum Status Report.
1300 ET Treasury auctions $21 bln in 10-year T-notes.