US pre-open: Stocks seen flat as investors eye Fedspeak; oil in focus

US futures pointed to a steady open on Wall Street on Wednesday as investors eyed speeches by Federal Reserve officials and some key data releases.

At 1200 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were up 0.1%.

In currency markets, the dollar was up 0.3% against the pound, which was hit by a YouGov poll published in The Times suggesting that Prime Minister Theresa May could fail to win an outright majority in the election. According to the poll, the Conservatives could lose as many as 20 of the 330 seats they held in the last parliament, while Labour could gain nearly 30.

Oil prices were on the back foot ahead of the American Petroleum Institute's weekly crude oil stocks data at 2130 BST. West Texas Intermediate was down 1.7% to $48.85 a barrel and Brent crude was 2% lower at $50.82.

David Morrison, senior market strategist at SpreadCo, said: "It’s shaping up to be a pretty uninspiring US open with the major stock index futures suggesting a quiet start with modest gains. Traders are keeping an eye on crude oil which is once again under pressure. The front month WTI contract broke below $49 this morning as the market continues to give last week’s nine month extension of the OPEC/non-OPEC production cut agreement the thumbs-down. The overriding view is that this just won’t be enough to bring the oil market back into balance. Inventories are still too high, the demand outlook is uncertain and US shale production continues to rise.

"We saw a small pull-back in US equities last night yet there’s little sign that a long-overdue correction is on the way. However, it’s a small selection of tech stocks which is driving the market higher. It would be healthier if there was some additional breadth which could keep the upside momentum going."

On the corporate front, Michael Kors and Vera Bradley were among the companies slated to report earnings ahead of the opening bell.

Elsewhere, American Tower Corp was likely to be in focus following reports it is exploring a bid for Cellnex Telecom.

Investors will be eyeing speeches from Dallas Fed President Rob Kaplan and San Francisco Fed President John Williams in New Yok and Seoul, South Korea, respectively, later in the day.

On the macroeconomic calendar, the Chicago purchasing managers' index is at 1445 BST, while pending home sales figures for April are due at 1500 BST.