Morning Update

In the chart below we combine the overnight trading of the S&P 500 futures as well as international markets to create one composite world market chart.  As today's chart highlights, equity markets are undecided heading into the open for US markets (which is understandable given everybody's preoccupation with the Fed at 2:15 ET).  As the chart highlights, Asian markets opened stronger before quickly giving back those gains only to rally back late in the session, while Europe opened at its highs for the day and faded.

Below the chart, we highlight some of the major stories occurring overnight along with what's in store for the rest of the day.

What’s Happened:

Merger speculation in Asia pushes metals stocks higher; RTP rises 11%.

TM predicts slowdown in sales growth amid slumping US sales.

Mortgage Applications rise 3% erasing last week’s decline.

PCLN boosts EPS and revenue guidance.

CSCO down $1.5 after reporting stronger than expected earnings.

Journal of American Medicine says drug coated stents can double risk of death when prescribed inappropriately (BSX, JNJ, MDT).

DIS beat EPS forecasts by 7 cents.

ERTS lowered Q1 and full year guidance.

BRK/A: WSJ says Buffet looking to make big takeovers.

BA: Indian airline cancels $1 bln freight jet order citing a better deal with Airbus.

TOL says it no longer expects to meet Q2 guidance.

IBM upgraded to buy at Goldman.

AAPL is confident that the iPhone will ship on time.

CFC announces 11% increase in y/y mortgage fundings.

Pre-Market Movers:

Most Up ($): RTP (+13.80), FWLT (+6.80), MVSN (+2.40), AT (+1.56), IBM (+1.00), BHP (+0.83).

Most Down ($): DNDN (-9.36), MDRX (-2.24), CSCO (-1.37), DCX (-1.00).

What’s on Deck:

9:30 – Congressional hearing on currency manipulation

10:30 – Energy Inventories (Oil: +875, Gas: +150K, Distillates: +450K)

2:15 – FOMC Rate Decision (No Change Expected)

Stocks Going Ex Dividend:  BA (0.35), GM (0.25), PFE (0.29), WYE (0.26)