US pre-open: Futures gain ground ahead of key economic data and Yellen's testimony

US stock futures turned north on Thursday, as investors awaited a speech from Federal Reserve chairwoman Janet Yellen.

The Dow Jones Industrial Average is expected to open approximately up 96 points, while the S&P 500 and the Nasdaq are set to begin the session 12 and 32 points higher respectively.

All eyes on Yellen

Yellen will give testimony to the Joint Economic Committee of Congress at 1500 GMT.

On Wednesday, the Fed chairwoman provided arguably her most hawkish offering of the past few months, as she hinted that December’s FOMC meeting should see a rate-hike lift-off.

“Yellen was very bullish on the economy and claimed she is looking forward to raising rates,” said Oanda’s senior market analyst Craig Erlam.

“More of this talk today would surely be a direct intentional signal to the markets that rates are rising in two weeks.”

On the macroeconomic front, at 1330 GMT investors will analyse a reading on initial jobless claims for the week to 28 November.

Analysts expect the number of new claimants to have risen from 260,000 to 270,000 last week.

The final reading of the Markit services purchasing managers’ index for November is due out at 1445 GMT, followed by a reading on factory orders for October at 1500 GMT.

A report on durable goods for October is also scheduled for release at the same time, along with the ISM non-manufacturing index for November, which is expected to have declined from 59.1 to 58.

Market participants will also hear from Cleveland Fed president Loretta Mester, who will give a speech at the Cleveland Fed conference on financial stability at 1330 GMT, while Fed Vice chairman Stanley Fischer will speak at the same event at 1810 GMT.

In company news, Yahoo gained 0.56% ahead of the bell after a number of firms have emerged as potential suitors for the group’s core internet business.

According to sources cited by the Wall Street Journal, IAC/InterActive and Verizon Communications are among the companies interested.

Elsewhere, Asian stocks were mixed as a result of an overnight decline in oil prices and concerns over higher interest rates in the US, while European stocks advanced as investors largely expected the ECB to confirm fresh stimulus measures later on Thursday.

Oil prices rebounded as OPEC’s two-day meeting kicked off in Vienna, with West Texas Intermediate rising 1.67% to $40.62 a barrel, while Brent jumped 2.37% to $43.52 a barrel.

The dollar was broadly flat against the pound and gained 0.19% and 0.58% against the yen and the euro respectively, while gold spot declined 0.27% to $1,050.83.