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10 things you need to know before the opening bell

Dec 14, 2016, 17:26 IST

A man lights up his cigarette with the flames of a bus burned by anti-government demonstrators during a protest against the constitutional amendment PEC 55, which limits public spending, in front of Brazil's National Congress in Brasilia, Brazil.Reuters/Adriano Machado

Here is what you need to know.

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The Fed is expected to raise rates at Wednesday's meeting. World Interest Rate Probability data provided by Bloomberg shows there's a 100% chance the Fed will hike its key interest rate 25 basis points to a range of 0.50% to 0.75%. The statement, dot plot, and projections will cross the wires at 2 p.m. ET and Fed Chair Janet Yellen's press conference will begin at 2:30 p.m. ET.

The Dow is closing in on 20,000. The Dow Jones Industrial Average closed up more than 114 points on Tuesday, finishing at 19,904.46. The gain marked the 16th record high since election night.

UK unemployment holds at a 10-year low. The unemployment rate in the UK held at 4.8%, matching its lowest print in 10-years, according to data released by the Office for National Statistics. The British pound is down 0.1% at 1.2644.

Spain is changing regulation to steal business from London post-Brexit. The measures include allowing companies to submit all of their documents in English, fast-track authorization for financial companies looking to relocate, as well as promising that the country will not impose any regulatory requirements beyond those set out by the European Union.

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Jeff Gundlach thinks a stock market sell-off is coming. During Tuesday's webcast titled "Drain the Swamp," DoubleLine Funds founder Jeff Gundlach said stocks typically rise following an election, and then sell off as investors realize the new president can't implement everything he has promised.

Wells Fargo failed its "living will" test for a second time. Both the Federal Reserve and the Federal Deposit Insurance Corporation rejected Wells Fargo's plans for how it would resolve its business in the event of a crisis. As a result, Wells will now be restricted in its ability to perform international operations and acquire certain types of businesses.

Goldman Sachs is expected name Gary Cohn's successors. David Solomon and Harvey Schwartz are expected to be named CEO Lloyd Blankfein's top lieutenants now that COO Gary Cohn will head the White House National Economic Council, the Wall Street Journal reports.

Tech leaders are meeting with Trump on Wednesday. Amazon CEO Jeff Bezos, Apple CEO Tim Cook, Tesla CEO Elon Musk, and others will take the trip to Trump Tower in New York for what is expected to be a discussion about jobs and immigration with the President-elect.

Earnings reporting is light. Joy Global reports its quarterly results ahead of the opening bell.

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US economic data picks up. Retail sales amd PPI will be released at 8:30 a.m. before industrial production crosses the wires at 9:15 a.m. ET. The US 10-year yield is down 3 bps at 2.44%.

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