Wall Street recovered more than its share of Monday’s loss. All three major indices advanced on Tuesday, on a rather quiet day on the street. The Dow Jones industrial average rose 51.01, or 0.5 %, to 9,829.87. The Standard & Poor’s 500 index gained 7.00, or 0.7 %, to 1,071.66, while the Nasdaq composite index advanced 8.26, or 0.4 %, to 2,146.30.

Stocks were led higher by commodities, as the dollar fell amid a host of treasury auctions this week. Financials, which also declined yesterday, rebounded sharply. The market is now trading based on the dollar. Last summer, as oil prices rose, energy shares led the market up. Now, the weak dollar is driving certain sectors, and as long as the economic data stays ok, the entire market is coming along for the ride.

Morning Outlook

Markets were modestly lower in Asia Wednesday, ahead of the FOMC decision and statement here in the U.S. Overnight, Hong Kong’s Hang Seng index fell 105.62, or 0.5 %, to 21,595.52 and South Korea’s Kospi dropped 7.41, or 0.4 %, to 1,711.47. Japan was once again closed for a holiday.

In Europe, Britain’s FTSE 100 was up 0.4 % at 5,162.52, Germany’s DAX added 0.4 % to 5,733.41 and France’s CAC 40 climbed 0.3 % to 3,833.37.

On Wall Street, traders look to tread cautiously ahead of the 2:15 fed statement; with mixed futures so far this morning. In premarket action, Dow Jones industrial average futures rose 4, or 0.04 %, to 9,775. Standard & Poor’s 500 index futures gained 0.60, or 0.1 %, to 1,067.90, while Nasdaq 100 index futures fell 0.50, or 0.03 %, to 1,733.75.

Currencies and Commodities

The dollar rose 0.1718% at 91.26 yen in the currency market. The euro depreciated 0.0245% to $1.4787 while the pound advanced 0.4985% to $1.644. Gold rose 50 cents to $1016 an ounce, while silver gained 0.12% at $17.135. Light, sweet crude for November delivery lost 25 cents to $71.51 per barrel on the NYMEX; a 0.35% decline ahead of the weekly inventory report.

Economic Calendar

10:30 AM
EIA Petroleum Status Report: The Energy Information Administration (EIA) provides weekly information on petroleum inventories in the U.S. The falling dollar has helped lift crude prices despite weak demand as we head into the fall lull before the cold weather.

2:15 PM
The FOMC will announce their decision on interest rates and other open market operations. Target rates are expected to stay the same, however markets will be focusing on language in the text indicating any specifics about their view on economic strength as well as the potential end of certain emergency loan programs. The fate of quantitative easing could also come into play as the economy shrunk at a narrow 1% annual rate in the 2nd quarter.