US pre-open: Futures higher as indices look to extend recent rally

Wall Street futures were in the green ahead of the bell on Wednesday as major indices look to build on November's already solid gains.

As of 1240 GMT, Dow Jones futures were up 0.33%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.43% and 0.55% firmer, respectively.

The Dow closed 83.51 points higher on Tuesday, taking a bite out of losses recorded in the previous session.

Comments from Federal Reserve Governor Christopher Waller were still in focus early on Wednesday after he seemed to indicate that he thinks current monetary policy appears to be sufficiently restrictive to cool inflation back down to the central bank's 2% target.

Scope Markets' Joshua Mahony said: "US markets are expected to open on the front-foot, as the dovish optimism off the back of Waller’s comments were enhanced by growing expectations of a slump in eurozone inflation tomorrow. Fed member Waller stated that the current level of interest rates are well positioned for a pushback down towards the inflation target. With inflation heading lower, Waller stated that we could see rates cut in three, four or five months. Markets currently price a first rate cut in May, and thus it appears as though the Fed are encouraging calls for a swifter return to easing than markets currently expect."

On the macro front, US mortgage applications will be out at 1300 GMT, while a preliminary reading of October's goods trade balance figures will be out at 1430 GMT, as will preliminary personal consumption expenditure prices data and wholesale inventories numbers for last month.

In the corporate space, automotive giant General Motors was in focus prior to the open after announcing it would be launching a $10.0bn share buyback, raising its dividend, and reinstating its full-year guidance.

In terms of earnings, Hormel Foods and Dollar Tree will publish their latest quarterly results before the open, while Salesforce will issue an update after the close of trading.

Reporting by Iain Gilbert at Sharecast.com