US pre-open: Futures climb ahead of manufacturing data

US stock futures turned north on Tuesday, as Wall Street looked to begin December on the front foot.

The Dow Jones Industrial Average is expected to open approximately 80 points up, while the S&P 500 and the Nasdaq are set to begin the session nine and 21 points higher respectively.

ISM index in focus

On Tuesday, investors will analyse a number of economic reports that could shed further light on whether the Federal Reserve will raise interest rates this month.

The final manufacturing purchasing managers’ index for November is released at 1445 GMT, with analysts expecting it to confirm the flash estimate of 52.6.

Soon after, at 1500 GMT, the Institute for Supply Management’s index of manufacturing is scheduled for publication and is expected to have risen from 50.1% in October to 50.5%.

A reading on construction spending for October is also out at 1500 GMT.

The US central bank is widely expected to signal a first lift-off in almost a decade at its 15-16 December meeting after a strong set of economic data in November, but data released this week could provide further indication over the Fed’s intentions.

”Monday saw the Dow fall following weak data, unusual for the index given how it has traded throughout the year,” said Spreadex’s financial analyst Connor Cambell.

“Tuesday’s figures will test then just how far the good is bad/bad is good pattern has reversed.”

Investors will also hear from a number of Fed speakers, with Chicago Fed President Charles Evans set to give a speech on the economy at Michigan University at 1745 GMT, while Fed governor Lael Brainard will talk about “Lower Neutral Rate and its implications for Monetary Policy” in California at 2300 GMT.

In company news, software group Infoblox gained 0.40% in pre-market trading after reporting better-than-expected results late on Monday, while HF Financial rose 0.49% ahead of the bell after agreeing to a $139.4m takeover offer from Great Western Bancorp.

Elsewhere, Asian stocks rallied as investors pinned their hopes on expectations Chinese authorities will soon introduce fresh stimulus measures, while European equities moved in tight ranges.

The dollar was broadly flat against the yen but fell 0.24% and 0.15% against the euro and the pound respectively, while gold spot rose 0.34% to $1,068.35.

Oil prices edged higher, as West Texas Intermediate rose 0.33% to $41.79 a barrel, while Brent crude climbed 0.13% to $44.67 a barrel.