US pre-open: Stocks seen flat amid mixed oil prices; Apple in focus

Stocks on Wall Street looked set for a flat open on Monday amid mixed oil prices, as investors looked for fresh catalysts.

At 1130 GMT, Dow Jones Industrial Average and Nasdaq futures were up just 0.1% while S&P 500 futures were unchanged.

Stocks in Europe were mixed while most markets in Asia ended on a positive note, with the Shanghai Composite the standout gainer as Chinese policy makers loosened controls on margin lending.

At the same time, oil prices were mixed, having been firmly in the red earlier after data from driller Baker Hughes showed US energy companies last week added one oil rig to 387 following three months of cuts.

West Texas Intermediate was down 1.2% to $38.97 a barrel while Brent crude reversed losses to trade up 0.2% at $41.25.

“As ever the oil price is still the major element in any stock market movements - last week dips were furiously bought so we may see this play out once more,” said Chris Beauchamp, senior market analyst at IG.

“With only US existing home sales on the calendar for today Wall Street will find itself trading on sentiment, which remains broadly bearish despite the rally.”

Investors were digesting comments from Richmond Fed President Jeffrey Lacker who said in a speech that the latest US inflation figures were stronger than expected and expressed confidence that inflation will hit the Fed’s 2% target.

Atlanta Fed Dennis Lockhart is due to give a speech on the economy and monetary policy at the Rotary Club of Savannah later in the day.

In corporate news, Starwood Hotels & Resorts was in the black after agreeing to a revised offer from Marriott International at $79.53 per share or $13.6b, which exceeds the $13.2bn offered by a consortium led by China’s Anbang Insurance Group.

Sherwin-Williams Co. was on the back foot after saying on Sunday that it has reached a deal to buy paint industry rival Valspar Corp. for around $8.9bn. Valspar shares were sharply higher, however.

Technology giant Apple was likely to be in focus as it is expected to unveil a 4-inch iPhone and a new iPad at its Cupertino headquarters.

In currencies, the dollar was 0.5% higher against the pound, 0.1% weaker versus the euro and flat against the yen.