It’s D-day at the Fed, as Chairman Ben Benrnake (pictured) and the Federal Open Market Committee unveil their latest policy decision. Virtually no-one is expecting a rate move, but, rather, the focus will be on language and how the Fed weighs recent upbeat economic data against fears that a burgeoning recovery is on shaky ground.
Also in the driver’s seat is Chrysler CEO Sergio Marchionne, who is expected to spell out plans for reviving the flat-lining automaker.
* Cisco Systems leads the earnings parade with quarterly numbers that may reflect a recovery in tech spending. Comcast, Qualcomm and News Corp are also on the docket.
* Data highlights include the ISM’s non-manufacturing numbers and readings on the employment picture from Challenger and ADP.
Sportswear giant Nike is expected to report first-quarter results, while Washington financial regulators will be busy with meetings all week.
*Nike reports first-quarter results. The company expects revenues to be lower than in its year-ago quarter amid the sluggish worldwide economy.
In other news:
* The Federal Reserve begins its two-day open markets committee meeting.
* World leaders meet at U.N. headquarters in New York for a one-day climate summit.
Investors’ attention will turn to Jackson Hole, Wyoming, as policy-makers from around the world gather to talk about how to prevent another global financial crisis. Results from Gap and Sears are also expected.
The Kansas City Federal Reserve’s yearly conference at a mountain retreat in Jackson Hole, Wyoming, draws central bankers and top economists together as the current crisis appears to be easing. Fed Chairman Ben Bernanke speaks on Friday.
Gap’s results will show whether its focus on boosting margins, even as a widespread slump in consumer spending has cut into sales, has been successful.
Eddie Lampert’s efforts to break Sears into five segments and taking his scattered approach to finding a format for growth will be on display when the retailer reports quarterly financials.
August business activity and weekly employment data should reinforce investor expectations that the economy is on the mend.