September 11, 2012- Stocks Look to a Higher Start

The major U.S. index futures are pointing to a higher opening on Tuesday, with risk appetite improving as the FOMC meeting draws closer. Reports that the German constitutional court will not delay its verdict on the ESM beyond tomorrow have also served to support risky bets. Commodities and risk currencies are higher. The Dow could get a lift from positive comparable store sales reported by McDonald’s (MCD). Earlier in the day, the Commerce Department released a report on the U.S. trade balance for July, which widened by less than expected. Despite all these, the underlying sentiment is likely to remain cautious, given the fluid economic situation and the overbought levels of the markets. U.S. stocks retreated on Monday, as the stimulus expectations-boosted rally of the previous week lost steam amid a lack of any major catalysts. The major averages opened lower and moved with nervousness, mostly below the unchanged line with modest losses. Selling accelerated in late afternoon trading, sending the averages notably lower. The Dow Industrials ended down 52.35 points or 0.39 percent at 13,254 and the S&P 500 Index closed at 1,429, down 8.84 points or 0.61 percent, while the Nasdaq Composite Index ended 32.40 points or 1.03 percent lower at 3,104.