October 28, 2013-Stocks Look to Trade Hgher on Upbeat Earnings

Early indications suggest that Wall Street stocks may open higher on Monday, with the major U.S. index futures currently firmly higher. The markets may seek the support of earnings from companies including Merck and stimulus hopes to keep the momentum intact. The Federal Reserve's industrial production report and the pending home sales data may also give some direction to the markets. At the same time, the buying interest may be muted ahead of a 2-day FOMC meeting getting underway tomorrow. The Dow futures are rising 41 points, the S&P 500 futures are moving up 4.20 points and the Nasdaq 100 futures are advancing 11.50 points. U.S. stocks extended its weekly advance in the week ended October 25th, helped by positive earnings reports and hopes that Federal Reserve's monetary policy committee meeting the following week will decide to delay the withdrawal of stimulus. The 2-day FOMC meeting along with jobs and manufacturing data are likely to headline the economic events of the unfolding week. Traders may closely watch the outcome and the post meeting policy statement of the FOMC meeting that gets underway on Tuesday to see whether the fiscal crisis plaguing the nation has impacted the Fed's thinking on the timetable to withdraw the stimulus. The Federal Reserve's industrial production report for September, the results of the Institute for Supply Management's national manufacturing survey, the results of the MNI's Chicago manufacturing survey for October, the jobless claims report, ADP'S private payrolls data for October, the Commerce Department's retail sales report for September, the Conference Board's consumer confidence reading for October and the National Association of Realtor's pending home sales index for September may also draw the attention of traders.