As the Fed's latest statements on interest rates sink in, attention will turn to Thursday's strong IPO roster. Asian markets were mixed, Europe moved down, and the Dow is set to open lower.
Initial celebration of the Federal Reserve's decision to leave interest rates unchanged may die out Thursday as investors digest warnings that the Fed will resume efforts to slow the economy if growth rebounds this summer.
A couple economic reports are due out: the final numbers for the first quarter gross domestic product is expected to show an annual growth rate of 5.4 percent, unchanged from the prior revised report. The GDP chain deflator, a key measure of inflation, is also expected to remain the same -- a 2.7 percent gain. A report on new housing sales in May is expected to show an annual sales rate of 900,000 in the month, down from 909,000 in April.
Three more offerings have priced in what is the busiest week for IPOs this year; Accord Networks (Nasdaq: ACCD), CareScience (Nasdaq: CARE), Virage (Nasdaq: VRGE) all priced shares for trading Thursday. Capstone Turbine (Nasdaq: CPST), also expected to debut, announced Wednesday it has raised its range to $14 to $16 a share.
Expect the following technology stocks to be among Thursday's most actively traded issues: Cabletron Systems, Deltek Systems, ION Networks and Palm.
Technology stocks made sharp gains Wednesday after the FOMC said it would leave interest rates unchanged. The Nasdaq composite closed up 81 points to 3,940.34 while the Dow Jones industrial average gained 23 points to end at 10,527.79.
At the Bell
The Dow Jones industrial average may open about 51 points lower. The Standard & Poor's 500 index for June futures contracts was down 7.1 to 1464 at 7:31 a.m. EST in 24-hour electronic trading.
The Inter@ctive Week @Net Index was up 7 to 486.88.
Trading in Asia was mixed. The Nikkei 225 rose 0.61 to 17,475, Singapore's Strait Times index fell 0.56 percent to 2,049 and Hong Kong's Hang Seng was down 0.92 percent to 16,286.
European markets were sliding. London's FTSE 100 fell 0.53 percent to 6,279. The CAC 40 in Paris slipped 1.27 percent to 6,524 and the DAX in Frankfurt was down 1.85 percent to 6,925 at 6:57 a.m. EST.
Reuters contributed to this report.