US pre-open: Stocks seen flat ahead of Yellen speech

US futures pointed to a broadly flat open on Wall Street as investors looked to a speech by Federal Reserve chair Janet Yellen for further clues on the timing of the next rate hike.

At 1115 BST, Dow Jones Industrial Average and Nasdaq futures were up 0.1%, while S&P 500 futures were flat.

“US stocks look set for a higher open. Hope that Janet Yellen will save the day has helped stocks unwind all of Friday’s losses following the weak non-farm payrolls print,” said Jasper Lawler, market analyst at CMC Markets.

At the same time, oil prices rose. West Texas Intermediate was up 1.3% to $49.23 a barrel and Brent crude was up 1.4% at $50.31.

“The slide in the stocks that began after Friday’s very disappointing US jobs report has eased, for now, ahead of a speech from Fed Chair Janet Yellen at 1730 BST. The noticeable slowdown in the US labour market over the past two months only need be a problem for stock markets if the Fed continues to hint at a summer rate hike. The S&P 500 near record highs tells us easy monetary policy trumps growth worries,” said Lawler.

“Yellen has recently said she expects a rate hike to come in the ‘coming months’. One data point won’t derail the Fed’s expectation of gradually raising rates, but in the minds of the majority of the FOMC, likely pushes back the next rate rise to September.”

Yellen will be giving a speech on the economic outlook and monetary policy at the World Affairs Council of Philadelphia’s luncheon.

In currency markets, the dollar was gaining back some ground after sliding against major rivals following the jobs report; the pound was weighed down by Brexit polls showing growing support for the Leave campaign and the yen slipped as Japanese officials talked the currency down.

The greenback was up 0.2% against the euro, 0.7% versus the pound and 0.6% against the yen.

However, if Yellen admits later on that a summer rate hike is not on the cards, the dollar could take another hit.

Speaking in Finland, Boston Fed President Eric Rosengren said earlier on Monday that a rate hike was still likely, albeit not this month, despite the weak jobs report.

He said it was important to wait and see whether the weak jobs report was a reflection of a broader slowing in labour markets or just an anomaly.

In corporate news, Regeneron Pharmaceuticals was likely to be in focus after it and partner Sanofi announced positive news on a trial of dupilumab for the treatment of skin diseases.