U.S. stocks opened lower opening on Wednesday as investors take a cautious approach ahead of the release of Fed minutes from the September Fed meeting due out later in the day and weigh the impact of a slower than expected start to 3rd quarter earnings season yesterday after aluminum maker Alcoa missed revenue estimates and uncertainty lingers about the upcoming U.S. election and a possible interest rate hike during the Fed’s meeting December that could raise the U.S. dollar further against global currencies and hurt profit margins for U.S. businesses.
On Tuesday Alcoa posted lower than expected revenue and shares of the aluminum maker dropped – 11.42 percent.
According to the CME Group, the probability of a 0.25 basis point interest rate hike at the December 14th Fed Reserve meeting fell yesterday to 59.3 percent from 64.0 percent on the previous day.
FactSet estimates earnings for Q3 2016 to decline -2.1 percent for the S&P 500.
The strong U.S. dollar was cited as a factor for the decline by a majority of sampled earnings transcripts in the index.
Later today, New York Fed President William Dudley will be giving a talk with the Business Council of New York and Kansas City Fed President Esther George will be speaking at a symposium in Chicago.