Tuesday will be an eventful day for investors, with Fed Chairman Alan Greenspan’s final Federal Reserve meeting after 18 years at the helm, followed by high-flyer Google’squarterly earnings report and President Bush’s State of the Union address.
Greenspan, who led the Fed from the crash of 1987 through the “irrational exuberance” of the late 1990s and its unwinding in the biggest bear market in a generation and subsequent recovery, is expected to raise interest rates for the 14th time in 19 months. Stocks have rallied in recent months on hopes that the Fed’s rate-hike campaign will end in another rate hike or two.
After the close, Google will report its quarterly results, and analysts generally expect the company to meet or exceed estimates despite a generally lackluster earnings season to date. Analysts expect earnings of $1.76 a share on sales of $1.29 billion, up from 92 cents and $654 million in the year-ago quarter.
Stocks were mixed Monday ahead of Tuesday’s news.
The Nasdaq rose 2 to 2306, the S&P 500 added 1 to 1285, and the Dow slipped 7 to 10,900. Volume declined to 2.28 billion shares on the NYSE, and 1.97 billion on the Nasdaq. Decliners led 16-15 on the NYSE, and 16-14 on the Nasdaq. Upside volume was 52% on the NYSE, and 61% on the Nasdaq. New highs-new lows were 287-29 on the NYSE, and 223-17 on the Nasdaq.
eBayfell 2% on the latest in its counterfeit jewelry dispute with Tiffany.
Check Pointlost 4% on its results.