US pre-open: Futures mostly lower as traders look to Fed

Wall Street futures were mostly in the red ahead of the bell as market participants looked ahead to a number of speeches from Federal Reserve officials and continued to digest comments from the head of the central bank.

As of 1220 GMT, Dow Jones and S&P 500 futures were down 0.27% and 0.26%, respectively, while Nasdaq-100 futures were up just 0.01%.

The Dow closed 265.67 points higher on Tuesday as investors zeroed in on a speech from Federal Reserve chairman Jerome Powell before the Economic Club of Washington where he reiterating comments that raised hopes that the Fed will soon halt or pivot interest rate hikes.

AvaTrade's Naeem Aslam said: "After a bumpy session yesterday, the Fed's Chairman, Jerome Powell, has given a clear message that if traders think that the Fed is done with the process of interest rate hikes, then they definitely need to rekindle their expectations as economic data suggests that they can push the curve a lot more.

"Now, the expectations in the markets are no longer for the Federal fund rate to be in the range of 4.75% to 5%, in fact, many believe that the Fed could actually end up pushing the interest rate all the way to 5.25%."

Also on Wednesday, traders will look to the central bank yet again, with John Williams, Michael Barr, and Christopher Waller all set to deliver speeches before the close of trading.

On the macro front, mortgage applications surged 7.4% in the week ended 3 February, according to the Mortgage Bankers Association of America, rebounding from the previous week's 9% tumble. Applications for refinancing rose 17.7% and applications for purchases increased 3.1%.

Still to come, December wholesale inventories data will be published at 1500 GMT.

In the corporate space, Under Armour, Yum! Brands, CVS Health, Walt Disney, Fox, Goodyear Tire & Rubber, Wynn Resorts, Uber, Sonos, Mattel, and MGM Resorts will all report earnings throughout the course of the day.

Reporting by Iain Gilbert at Sharecast.com