US pre-open: Futures edge lower as S&P 500 looks set to extend losses

US stock futures were slightly lower on Tuesday, as the S&P 500 looked on course for its fifth consecutive decline.

The Dow Jones Industrial Average is expected to open down approximately 18 points, while the S&P 500 and the Nasdaq are set to begin the session two and six points lower respectively.

Dow turns negative for 2015

On Monday, the S&P 500 fell 0.98%, while the Dow Jones turned negative for the year after sliding 1%, as investors remained cautious ahead of an increasingly likely December interest rates hike.

“Markets lost some momentum heading into the US jobs report and have failed to pick up the pace since,” said CMC Markets’ analyst Jasper Lawler.

“The strong US labour market data has pushed the odds of a December rate hike above 70% but data from around the world suggests a hike would be in a an environment of low global inflation and slowing growth.”

The economic calendar is unlikely to offer much guidance in terms of Federal Reserve’s policy, with the highlight of the session being a reading on import prices for October, out at 1330 GMT, followed by figures on September wholesale inventories at 1500 GMT.

In company news, cloud computing group Rackspace Hosting could be in focus after posting better-than-expected quarterly profit and revenue late on Monday.

Synchrony Financial climbed 0.83% ahead of the bell after saying late on Monday that it will replace Genworth Financial in the S&P 500 from 17 November, while fast food giant McDonald’s could be active as it will hold an investor meeting from 1800 GMT.

Online retailer Wayfair, home builder DR Horton, media and entertainment group Tribune Media will report before the opening bell.

Elsewhere, most Asian markets declined, as worries over a slowdown in China intensified after another poor set of economic data, although Japan’s Nikkei Stock Average gained for the fifth consecutive session.

European equities were trading mostly lower, while oil prices were mixed, with West Texas Intermediate gaining 0.18% to $43.95 a barrel, and Brent down 0.17% to $47.11 a barrel.

The dollar gained 0.17% and 0.33% against the yen and the euro respectively but was broadly flat against the pound, while gold futures gained 0.08% to $1,093.14.