Stock Market Update

[BRIEFING.COM] Today's trade is mixed thus far. The S&P 500 (-0.4%) and Nasdaq Composite (-0.7%) have traded lower while the Dow Jones Industrial Average (-0.1%) has trade above and below its prior close. 

Market breadth was positive earlier, but skews negative now, reflecting a lack of conviction from either side of the tape in front of key events today. Decliners lead advancers by a roughly 4-to-3 margin at both the NYSE and at the Nasdaq. 

The market-moving items include earnings reports from several mega cap stocks after the close. Microsoft (MSFT 442.90, -4.28, -1.0%), Tesla (TSLA 388.30, -9.79, -2.4%), and Meta Platforms (META 673.19, -1.15, -0.2%) trade lower ahead of their results.  

Before that, the market will digest the latest move by the FOMC at 2:00 ET and Fed Chair Powell's press conference at 2:30 ET. The market largely expects the target range for the fed funds rate to remain unchanged at 4.25-4.50%. The fed funds futures market sees a 99.5% likelihood of rates holding steady today, according to the CME FedWatch Tool.

Any uncertainty around today's meeting is related to Fed Chair Powell's press conference. Participants will keenly watch the tone he may take regarding the Fed's deliberations over the inflation data and what Mr. Powell thinks about President Trump's view that he knows more about interest rates than the Fed Chair does and that he believes the Fed will listen to him.

Treasury market action has been muted in front of the decision. The 10-yr yield is unchanged at 4.55% and the 2-yr yield is unchanged at 4.21%.

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index -2.0%; Prior 0.1%
• December Adv. Intl. Trade in Goods -$122.1 bln; Prior was revised to -$103.5 bln from -$102.9 bln
• December Adv. Retail Inventories -0.3%; Prior was revised to 0.0% from 0.3%
• December Adv. Wholesale Inventories -0.5%; Prior was revised to -0.1% from -0.2%