US pre-open: Stock futures rise ahead of data, earnings, Fed speeches

US stock futures pointed to a higher open on Monday as investors awaited data on manufacturing activity, remarks from Federal Reserve officials and corporate earnings.

S&P 500 futures rose 0.5% to 2,144.50, Dow Jones Industrial Average futures edged up 0.4% to 18,143 points and Nasdaq futures gained 0.6% to 4,872.25 points.

Oil prices, on the other hand, fell as Iraqi oil minister Ali al-Luaibi said it wanted to be exempt from an OPEC deal to cut production. However, losses were capped by Iran's deputy oil minister Amir Hossein Zamaninia saying Tehran would encourage other OPEC members to join an output freeze.

West Texas Intermediate crude dropped 0.69% to $50.50 per barrel and Brent crude slid 0.32% to $51.61 per barrel at 1230 BST.

On the data front, US manufacturing data from Markit is due at 1445 BST while the Chicago Fed National Activity Index will be released at 1330 BST.

A slew of Fed officials will speak later including William Dudley, James Bullard, Charles Evans and Jerome Powell.

The speeches come ahead of the Fed’s policy announcement next Wednesday, so traders will be searching for any hints on the timing of the next interest rate hike.

“Speeches from James Bullard and Charles Evans will be of particular interest, with the former being a voting member of the FOMC this year and one of those that did not dissent at the last meeting, and the latter being a voting member in 2017,” said Oanda’s Craig Erlam.

He added: “While the Fed is widely expected to hold next month, less than a week before the US heads to the polls, the announcement and statement that follows may well offer strong clues ahead of the December meeting which could shape how markets trade in the weeks ahead.”

On the company front, earnings are due from telecom giant T-Mobile US Inc. apparel company VF Corp. and Huggies diapers producer Kimberly-Clark Corp.

AT&T shares were under pressure in pre-market trade as its proposed $85bn takeover of Time Warner generated scepticism from Democrats and Republicans on Sunday. Time Warner shares, however, rose.

Republican candidate Donald Trump has said he would block the takeover. Democrat candidate Hillary Clinton did not comment on the proposed deal but has expressed misgivings about big mergers in the past. Senator Bernie Sander said on Twitter that the administration should "kill" the Time Warner takeover as it would mean higher prices and fewer choices for consumers.

“AT&T is already the third largest cable provider, so there is a feeling that this kind of consolidation can only be negative for consumers in both prices and range of content,” said IG’s Joshua Mahony.

“A Senate hearing in November will be the next hurdle to overcome if this deal is to become a reality.”

Elsewhere, shares in B/E Aerospace Inc. rallied ahead of the opening bell after Rockwell Collins Inc. on Sunday announced a $6.4bn deal to merge the two aerospace suppliers.

Genworth Financial Inc. gained after agreeing to be bought by Chinese investment firm, China Oceanwide Holdings Group for $2.7bn.