US stock index futures lower ahead of FOMC statement

Wall Street futures were lower in pre-session hours on Wednesday, with market participants looking ahead of the Federal Reserve rate decision and press conference, as well as some key earnings and economic reports later in the day.
US equities ended mostly flat on Tuesday as traders awaited earnings from Apple after the closing bell. The tech giant reported $52.9 billion in revenue for the first quarter 2017, falling short from an estimated gain of $53.02 billion. Earnings per share came in at $2.10 against a projected $2.02. Before showing downbeat data, Apple reached an all-time high market capitalization of $776.59 billion, but retreated to $765 billion following revenue figures.
“We are proud to report a strong March quarter, with revenue growth accelerating from the December quarter and continued robust demand for iPhone 7 Plus,” said Apple’s CEO Tim Cook on a corporate statement.
The Dow Jones industrial average closed nearly 35 points to the upside, while the S&P 500 remained close to breakeven as information technology, industrials and healthcare components pushed higher. The Nasdaq composite reached an intraday record-high of 6,102.72 points, but ended with a narrow 0.06 percent.

• Dow Jones Industrial Average: +36.43 / +0.17% / 20949.89
• Standard & Poor’s 500: +2.84 / +0.12% / 2391.17
• Nasdaq Composite: +3.76 / +0.06% / 6095.37

No relevant reports were presented yesterday and market players opted for a wait-and-see positioning as the US central bank kicked off its two-day policy meeting.
According to the CME Group’s FedWatch program, traders are currently pricing in a 4.8 percent chance of a rate hike this month, compared to more than 60 percent odds for June.
Analysts pointed out that Fed’s intention to reduce its $4.5 trillion balance sheet, the increasing geopolitical tension in the Korean peninsula and downbeat economic expansion for the first quarter 2017 are pressuring the monetary authorities. Interest rates are now standing on a range between 0.75 percent and 1.00 percent.
Today, ADP nonfarm employment change for April will be released as of 12:15 GMT, with expectations for a 175,000 jobs build. Markit’s composite and services PMIs will be out at 13:45 GMT, while the Institute of Supply Management is set to present its own non-manufacturing PMI as of 14:00 GMT. FOMC interest rate decision and statement are due at 18:00 GMT.
On the earnings front, market players will be looking at Cheesecake Factory, Cinemark, Facebook, Fitbit, Garmin, Kraft Heinz, MetLife, New York Times, Novo Nordisk, Tesla, Time Warner and many other companies.