US pre-open: Futures point to weaker open as oil slides again

US futures pointed to a slightly weaker open on Wall Street on Friday, with investors likely to book a few profits after three days of gains as oil prices declined.

At 1240 GMT, Dow Jones Industrial Average futures were down 70 points or 0.5% while S&P 500 futures were nine points or 0.4% lower.

US stocks fell on Thursday, snapping a three-day winning streak as oil prices turned lower after data from the US Energy Information showed crude inventories rose by 2.1m barrels last week to 504.1m barrels.

Prices were on the slide again on Friday, with West Texas Intermediate down 2% to $30.17 a barrel and Brent crude 1.7% weaker at $33.70.

On the data front, investors will look to the consumer price index which is released at 1330 GMT.

“The US CPI data will be key today as investors look for signs that inflation is showing any sign of returning to target. While inflation, as measured by core CPI, is actually already above the Federal Reserve’s 2% inflation target, it is not the central banks’ preferred inflation measure – core personal consumption expenditure price index - which is currently some way behind at 1.4%,” said Craig Erlam, senior market analyst at Oanda.

“Should we see an unexpected rise or drop in the CPI measure, we could possibly expect to see the same in next week’s release.”

European stocks were in the red, with each of the major indices down at least 1%.

In corporate news, Deere & Co. was weaker after it posted a drop in net income for the first quarter and downgraded its outlook for the full year.

CommScope shares were up in pre-market trading despite the company announcing it swung to a loss in the fourth quarter.

On the upside, Applied Materials surged in pre-market trade after the chip equipment provider sounded an upbeat note on its profit outlook.

The dollar was flat against the euro, 0.4% higher against the pound and 0.4% weaker versus the yen.