US pre-open: Stocks seen higher as oil rebounds; Goldman eyed

US futures pointed to a firmer open on Wall Street as oil prices continued to rebound from their post-Doha lows, with investors looking to the release of first-quarter results from behemoth Goldman Sachs.

At 1100 BST, Dow Jones Industrial Average futures were up 0.4%, S&P 500 futures were 0.5% higher and Nasdaq futures were up 0.8%.

At the same time, oil prices were in the black as a strike in Kuwait disrupted the supply chain. West Texas Intermediate was up 1.2% to $40.24 a barrel and Brent crude was 1.3% stronger at $43.45.

Oil was continuing to rebound from the heavy losses seen after the meeting of OPEC and non-OPEC producers in Doha on Sunday, which failed to yield an agreement to freeze production.

Stocks in Europe were firmly in the black, with all the main indices trading at least 1% higher.

“The stability in oil prices has strengthened attitudes among traders who are developing a strong appetite for riskier assets. After an initial plunge in oil prices due to a failed meeting in Doha, oil prices recovered remarkably and this has served as a signal that no more adverse news can cause any major dents for oil,” said Naeem Aslam, chief market analyst at AvaTrade.

On the corporate front, investors awaited earnings from Goldman Sachs, Johnson & Johnson, UnitedHealth, Harley Davidson and Philip Morris International.

“Goldman Sachs is expecting quarterly profit of $2.45 a share, well down on the EPS of $5.94 in the same period a year ago. On Monday investment bank peer Morgan Stanley reported an EPS of 55c, beating lowered estimates of 46c but falling well below expectations of closer to 80c earlier in the quarter,” said Jasper Lawler, market analyst at CMC Markets.

“The major drag on earnings and the likely focus for investors will be on the trading and investment banking business.”

Netflix slumped 7% in pre-market trade. Although its first-quarter earnings beat analysts’ expectations, the company’s weak growth forecast weighed on the shares.

On the macroeconomic calendar, investors will eye the release of US housing starts and building permits at 1330 BST.

In currency markets, the dollar was 0.5% weaker against the pound and 0.2% lower versus the euro, but up 0.5% against the yen.