US pre-open: Futures nudge higher as Wall Street looks to extend gains

US stock futures edged slightly higher on Monday, as Wall Street looked set to stretch last week’s gains.

The Dow Jones Industrial Average is expected to open approximately up 7 points, while the S&P 500 and the Nasdaq are both expected to begin the first session of the unchanged from Friday’s close.

US stocks looked to be buoyed by a rally in Chinese equity markets, driven by the People’s Bank of China’s pledge to introduce fresh stimulus measures to boost the country’s economy.

Over the weekend, China’s central bank announced it would expand a pilot programme aimed at increasing bank’s lending abilities, by allowing banks to pledge a number of assets to borrow from the central bank.

Fed speakers

With no major economic reports scheduled for Monday as the US celebrate Columbus Day, investors will analyse a number of speeches from key members of the Federal Open Market Committee.

Atlanta Fed President Dennis Lockhart, who last week claimed an October or December lift-off was “most likely appropriate” will speak on the US economic outlook at a conference in Florida at 1310 BST.

Chicago Fed President Charles Evans, who last week said he favoured a “somewhat later lift-off” will speak in Chicago at 1530 BST, with Fed governor Lael Brainard delivering a speech on policy and outlook in Washington at 2130 BST.

“US markets continue to be fascinated by the Fed’s ongoing public discussion over the wisdom of rate rises, but the general opinion appears to be that 2015 is now a very slim possibility,” said IG’s senior market analyst Chris Beauchamp.

In company news, EMC jumped 7.68% ahead of the bell after the Financial Times said Dell is expected to announce a deal with the data-storage maker as soon as Monday.

Ford Motor slid 0.13% in pre-market trading after revealing it plans to invest $1.8bn in China over the next three years.

The earnings season continues with Stanley Furniture and AmeriServ Financial both set to report on Monday.

Elsewhere, European stocks slid, while oil prices edged slightly higher, with West Texas Intermediate climbing 0.22% and Brent crude rising 0.15%.

The dollar was broadly flat against the euro and the yen but lost 0.19% against the pound, while gold futures rose 0.91% to $1,167.11.