*Buy and Sell signals are not recommendations and are a starting point for further analysis.
U.S stock indexes this morning are moving lower, with the S&P 500 posting a 1-1/2 week low and the Dow Jones Industrials falling to a 3-week low. Stocks are retreating on long liquidation pressure ahead of the results of today's FOMC meeting and comments from Fed Chair Powell. Stock indexes extended their losses today after Germany cut its 20201 growth projections.
The market is unanimously expecting the FOMC at its 2-day meeting that concludes today to leave its main policy variables unchanged with the funds rate target at 0.00/0.25% and the QE program at $120 billion per month. The markets are looking toward the post-FOMC statement and comments from Fed Chair Powell for guidance about the future of the Fed's asset purchase program and if Mr. Powell warns about when the Fed will begin to taper its asset purchases.
Today's U.S. economic data was bullish for stocks. The U.S. Dec capital goods new orders nondefense ex-aircraft, a proxy for capital spending, rose +0.6% m/m, slightly stronger than expectations of +0.5% m/m.
Losses in the Nasdaq 100 were limited today after Walgreens Boots Alliance jumped more than +5% after it named Starbucks Chief Operating Officer Roz Brewer as Walgreen's next CEO. Also, Microsoft is up nearly +3% today at a new record high when it reported after the close Tuesday that its Q2 revenue was $43.08 billion, much better than the consensus of $40.20 billion.
The German government today cut its growth projections for this year, knocking the Euro Stoxx 50 down to a 1-month low. The German government cut its 2021 GDP estimate to 3.0% from a 4.4% estimate in October and said the German economy would return to pre-pandemic levels in mid-2022, six months later than an October projection.
Stocks continue to be undercut by the pandemic surge, which is forcing countries to tighten lockdowns that undercut economic growth and corporate profits. Globally, Covid infections have risen above 100.948 million, and deaths have exceeded 2.170 million.
The VIX S&P 500 Volatility Index ($VIX) today jumped to a 3-week high of 29.06 and is currently up +3.03 at 26.05. The VIX is down sharply from last March's 12-1/4 year high of 85.47 but is holding above the late-November 10-1/2 month low of 19.51.