US pre-open: Futures in the red ahead of holiday-shortened week

Wall Street futures were in the red ahead of the opening bell on Monday as investors prepare for a holiday-shortened week.

As of 1225 GMT, Dow Jones futures were down 0.25%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.58% and 0.84% lower, respectively.

The Dow closed 199.37 points higher on Friday as market participants digested comments from Federal Reserve bankers James Bullard and Susan Collins.

Retail earnings will again be in focus this week, with Best Buy, Nordstrom, Dick's Sporting Goods, and Dollar Tree all set to report before the end of the week.

Markets will likely be quiet at the tail end of the week, with traders taking a break for Thanksgiving on Thursday. However, investors will also likely be keeping a keen eye on Black Friday holiday shopping reports for any clues as to current consumer confidence levels.

AvaTrade's Naeem Aslam said: "US and European futures are trading with caution today as investors will be looking for more clues from the Fed this week in relation to their monetary policy. No doubt that there has been confusion among investors and traders after the recent drop in the US inflation. The Fed doesn't need the same monetary policy stance they had in their previous meeting, as inflation is clearly showing a slowdown in its momentum.

"As for the week ahead, the trading action will be short this week due to the Thanksgiving holidays. The FOMC Minutes, slated to come in Wednesday, will be the main event for the US economy. Again, a clear message from the Fed will certainly help the sentiment, and we may see further strength for the US stock market. However, it is essential to keep in mind that throughout the current earnings season, if we have heard one clear message, it is that these companies have reduced their headcounts, and in addition to this, they have frozen the process of hiring. This particular element will keep the situation somewhat challenging for the US stock market."

On the macro front, the Chicago Federal Reserve's October national activity index will be published at 1330 GMT.

In the corporate space, Disney shares traded higher prior to the open after the group announced that Bob Iger was set to return as chief executive, with immediate effect.

Reporting by Iain Gilbert at Sharecast.com