Tesla Motors shares were up 5.1 per cent at $255.52 in premarket trading after Morgan Stanley raised its price target on the stock to $465 from $280.
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The New York Federal Reserve releases its Empire State general business conditions index for August at 8:30 a.m. ET.
Strong CPI data showed U.S. consumer prices rose slightly in July, marking the sixth straight month of increases and suggesting inflation pressures were stabilizing enough to support expectations of a rate hike this year. The S&P 500 was down 16.94 points, or 0.81 percent, at 2,079.98 and the Nasdaq composite was down 40.12 points, or 0.79 percent, at 5,019.23. On the Nasdaq, 1,830 issues fell and 518 advanced.
At 2:00 p.m., the Federal Reserve will release minutes of its July meeting, which some market participants believe may be the last before a possible rate hike next month. The data is due at 2 p.m. ET.
However, Yellen said the Fed doesn’t necessarily need to see inflation accelerate to hike rates, but simply must be reasonably confident it will pick up in the medium-term.
China’s situation “needs to be more brutal for the Fed to really use this as an excuse”, said Naeem Aslam, chief market strategist at AvaTrade, in a note Wednesday.
Economists have said investors looking at the latest minutes for clear signals on the timing of an increase in interest rate are likely to be disappointed.
Large retailer Target Corp.
Movers & Shakers: Before the open, Lowe’s Cos. posted weaker-than-expected profit growth for its second quarter, though a key sales metric gained.
NOT PRETTY: Estee Lauder reported better-than-expected earnings for the fourth quarter, but fell short of revenue forecasts due partly to disappointing results in its Clinique and namesake skin-care lines.
On Tuesday, U.S. stocks closed with modest losses, as the Dow snapped a three-day winning streak (http://www.marketwatch.com/story/us-stock-futures-slip-as-investors-wait-for-reasons-to-buy-2015-08-18).
Last month, gasoline prices increased 0.9% and food prices rose 0.2%, driven by a higher grocery bill. Over the past year, prices were up 0.2%.
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There are also two Fed officials speaking, with Minneapolis Fed President Narayana Kocherlakota speaking Thursday in South Korea, and San Francisco Fed President John Williams also on Thursday in Indonesia.
