US pre-open: Stocks seen flat as investors eye Apple earnings

US futures suggested a mixed open on Wall Street after the Nasdaq closed at a record high the day before, as investors awaited results from technology giant Apple.

At 1130 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were down 0.1%, while Nasdaq futures were up 0.1%. On Monday, the Nasdaq hit another closing high as investors piled into technology stocks.

Oanda analyst Craig Erlam said: "US equity markets are on course to open flat on Tuesday following a decent start in Europe where indices are currently posting moderate gains.

"Earnings season continues to be another key focus for investors and this week we’ll also get the latest monetary policy decision from the Federal Reserve as well as the April jobs report. While a rate hike at the meeting tomorrow is all but priced out, the probability of one at the meeting in June is currently just shy of the 70% level that is widely seen as the threshold for such a move. Tomorrow’s statement will therefore be very closely monitored in the absence of a press conference from chair Janet Yellen."

Societe Generale said relief that the US economy did not grind to a complete halt last quarter and optimism over faster growth this quarter means there is no compelling reason to expect the Fed to turn more dovish at this week's meeting.

"No change in the fed funds rate is expected tomorrow and the forward guidance should not change much if at all compared to the last meeting in March. Having laboured hard in 1Q to get markets to re-price future rate expectations higher, the Fed will not want to see its hard work undone especially if it emerges that 1Q economic slowdown was transitory.

"Privately, the FOMC must be content that markets are still assigning a 50% probability of a rate increase in June to 1.25%. Those odds will be subject to change of course depending on Friday's non-farm payrolls report."

In corporate news, Aetna shares were likely to be in focus after the health insurer said it swung to a loss in the first quarter of $1.11 per share from a profit of $2.08.

Earnings were due ahead of the opening bell from Merck & Co, Pfizer, Mastercard, Altria Group, Coach and ConocoPhillips. Results from Apple were due after the close of markets.

Over the weekend, reports suggested that Coach could be eyeing a £1bn-plus swoop for UK luxury brand Jimmy Choo.

Chip maker Advanced Micro Devices tanked in pre-market trade after it said late on Monday that it made a $73m quarterly loss.