US pre-open: Stock futures rise as oil prices rally, Fed speakers eyed

US stocks were expected to open higher on Thursday as oil prices rose and traders awaited speeches from Federal Reserve policymakers for hints on interest rates.

Futures for the Dow Jones Industrial Average increased 87 points to 17,745 and those for the S&P 500 edged up 13 points to 2,071. Nasdaq futures climbed 26 points to 4,377.

At the same time oil prices rose after a report showing a surprise fall in US weekly crude inventories soothed concerns about a supply glut.

The Energy Information Administration on Wednesday said crude-oil stockpiles fell 3.4 million barrels in the week ended 6 May, compared to analysts’ estimates for a 400,000 increase.

At 1324 BST West Texas Intermediate crude jumped 1.19% to $46.79 per barrel and Brent grew 0.79% to $47.98 per barrel.

The attention now turns to speeches by Fed officials Loretta Mester, Eric Rosengren and Esther George later in Thursday’s session. Economists will be listening for clues on the Fed’s plans for policy ahead of the interest rate decision in June.

Mester will give a speech on inflation dynamics in Reichenau, Germany at 1600 BST, while Rosengren speaks in New Hampshire at 1600 BST and George will discuss the economy at 1830 BST.

“The Fed has continued to state that a rate hike could happen at the meeting but as of yet, the markets are not buying it and if that doesn’t change, a rate hike is extremely unlikely,” said Craig Erlam, chief market analyst at Oanda.

Potentially adding to the argument to leave interest rates unchanged next month, the Labor Department revealed US weekly jobless claims unexpectedly rose in the latest week. Initial jobless claims climbed to 294,000 in the week to 7 May from 274,000 the previous week, compared to forecasts of 270,000.

On the corporate front, Jack in the Box Inc. gained in pre-market trade after the fast-food chain late on Wednesday reported second quarter earnings that exceeded forecasts.

Shares of Monsanto Co. rallied ahead of the opening bell amid speculation that German chemicals firm BASF is considering a takeover of the agriculture company.

Linn Energy may move after shares plunged more than 50% after the close on Wednesday as the energy and production company said it had filed for chapter 11 bankruptcy protection to implement a debt restructuring.