Laurence Meyer, Macroeconomic Advisers senior managing director, debates whether further Fed intervention is needed to stabilize the U.S. economy, with Stephen Roach, Yale University senior fellow.
By NBC News wire services
Updated at 12:05 p.m. ET: Investors drove stock prices up slightly Wednesday as they looked ahead to the Federal Reserve?s statement on interest rates.
Central bankers are likely to show that they are ready to act to support a weakening U.S. economy, but will stop short of aggressive measures for now.
The market posted its biggest two-day percentage gain to close out last week on increased expectations both the Fed and the European Central Bank will plan further actions to stimulate their respective economies at meetings this week, but the index has stalled the last two sessions as it reached levels not seen since early May.
A report showed U.S. manufacturing sector shrank for the second month in a row in July as new orders improved modestly but employment dropped to a 2-1/2-year low.
The Institute for Supply Management (ISM) said its index of national factory activity inched up to 49.8 from 49.7 in June, shy of economists' expectations for 50.2.
A reading below 50 shows contraction in the sector.
China's official factory purchasing managers' index edged down to an eight-month low of 50.1 in July from 50.2 in June, suggesting the sector is barely growing, while a rival HSBC survey indicated the more market-sensitive private sector is starting to recover.
MasterCard, the world's second-largest credit and debit card processing network, is expected to post a higher second-quarter profit as more people across the globe use cards instead of cash. Other major companies announcing results include Metlife, Prudential Financial Inc and Tesoro Corp.
According to Thomson Reuters data through Tuesday morning, of the 321 companies in the S&P 500 that have reported second-quarter earnings to date, 67.3 percent have reported earnings above analysts' expectations. Over the past four quarters, the average beat rate is 68 percent.
European stocks closed mixed Wednesday, helped by a string of better-than-feared corporate results ahead of policy decisions by the Fed and the ECB which some expect to result in bold action to support their economies.
Asian shares fell as soft Chinese manufacturing data further undermined investor confidence and as hopes faded for bold stimulus action this week by the Fed and the ECB to underpin faltering economies.
Reuters contributed to this report.
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