US Stock Futures Trade Flat but Dow Sets Up for New Record

New York (Dec 7)  Stock futures were flat Wednesday morning but the Dow Jones Industrial Average was on a course to open above its record close set a day earlier.

S&P 500 futures fell 0.01%, Dow futures added 0.05%, and Nasdaq futures were flat.

The Dow reached a new record close on Tuesday with just small gains. The blue-chip index has crept to new records in the past few weeks as investors bet that President-elect Donald Trump's Cabinet picks would herald Wall Street-friendly moves.

The rest of Wall Street has made small gains in quiet trading this week as investors look toward a crucial meeting of the Federal Reserve next Tuesday and Wednesday. The members of the Fed's decision-making committee are expected to hike rates by 25 basis points after signaling for months that the case for policy normalization had strengthened. Recent economic data showing positive inflation trends and a return to growth in manufacturing have made a year-end hike even more likely.

The likelihood of a rate hike when the Fed meets currently sits at 95%, according to CME Group fed funds futures. Most are anticipating an increase of 25 basis points with a few economists even suggesting the slim chance of an increase of 50 basis points.

Crude oil appeared to stabilize just under $51 a barrel on Wednesday after closing out Tuesday's session with losses for the first time since a major production freeze agreement announcement last week. Oil had rallied to 16-month highs after Organization of Petroleum Exporting Countries accepted terms to limit output. OPEC's production limit is set to take effect in January.

Source: TheStreet