US pre-open: Futures edge lower ahead of housing data

US stock futures edged slightly lower on Monday, as investors awaited a number of important earnings reports later during the week.

The Dow Jones Industrial Average is expected to open approximately down 20 points, while the S&P 500 and the Nasdaq are set to begin the first session of the week four and 10 points lower respectively.

The highlight of the week is the two-day Federal Open Market Committee’s meeting ending on Wednesday.

The decision itself is likely to be a straightforward no change but it’s the statement that’s going to be of interest, in the absence of a press conference,” said Oanda’s senior market analyst Craig Erlam.

“This is the Fed’s last chance to convince the markets that a rate hike is coming this year, therefore December, assuming of course that it still intends to do so.”

On Monday investors will analyse housing data with a report on new home sales for September released at 1400 GMT, while a reading for the Dallas Fed manufacturing for October is scheduled for release at 1430 BST.

Earnings season in focus

In company news, pharmaceutical group Valeant plunged 12% in pre-market trading after revealing it has formed a special committee to review allegations over relationship with mail-order Philidor Rx Services.

Management solutions provider Xerox gained 0.87% ahead of the bell after posting better-than-expected results, although revenue fell short of estimates.

The earnings season will shift through during the week, with Twitter and Apple set to report on Tuesday after the close.

Elsewhere, most Asian markets opened the week on an upbeat note after Chinese authorities gave the green light to a new round of stimulus measures, while European stocks pulled back slightly.

“Chinese Premier Li Keqiang took the sting out of the tail of rate cut by saying China won’t defend to the death its 7% growth target,” said CMC Markets’ analyst Jasper Lawler.

“Operating within a reasonable range of growth as opposed to defending 7% would imply a willingness to allow growth to slip to perhaps as low as 6%, which would require less stimulus.”

The dollar was broadly flat against the euro and declined 0.21% against both the yen and the pound, while gold futures rose 0.23% to $1,167.15.

Oil prices edged higher, with West Texas Intermediate gaining 0.31% to $44.74 a barrel, while Brent rose 0.25% to $48.10 a barrel.