Today all eyes and ears will be on what Fed Chairman Bernanke will say after a two-day meeting. The market will trade mostly mixed, but most if not all are expecting for the Fed to leave interest rates unchanged. This is not the primary determinant which direction the markets will go today, more like it’s what Bernanke will say the next time that will drive the market. A hint on a decrease in rates or any suggestions that it will be left the same will keep the markets staying afloat.
At the same time, some earnings news should also impact investors’ moods. A couple of days ago, merger news from major European banks, ABN and Barclays shed light that the multi-national companies still see a good economy ahead. Today, a few key earnings reports should continue to drive interest. Morgan Stanley already started off on a good foot, reporting first-quarter earnings exceeding analyst expectations, much like Goldman Sachs Group and Lehman Brothers Holdings did a week ago. FedEx Corp. also plans to report quarterly results today, and for yesterday’s drivers, Oracle Corp. and Adobe Systems Inc. turned in stronger-than-expected numbers as well.