US pre-open: Stocks seen higher but quiet session expected

US futures pointed to a slightly firmer open on Wall Street as investors eyed the start of the earnings season, although the session was expected to be fairly quiet, with many traders away from their desks for the Columbus Day holiday.

At 1130 BST, Dow Jones Industrial Average and Nasdaq futures were up 0.3%, while S&P 500 futures were 0.4% stronger.

Oil prices were flat to slightly lower amid doubts that non-OPEC producers will cut production, with West Texas Intermediate down 0.3% at $49.65 a barrel and Brent crude flat at at $51.89.

Meanwhile, the pound remained under pressure versus the dollar, down 0.2% at $1.2412.

Paul Webb, chief executive officer at ADS Securities London, said: “We have a slightly unusual situation in the US today – many public sector workers are off for Columbus Day, but this isn’t seen as a holiday by financial markets. As a result, there’s no public economic data slated for release, but Wall Street will be in session as usual although right now the bulk of the focus is going to be on the quarterly earnings season - which by many accounts really gets underway tomorrow with the release of numbers from Alcoa.

“A good earnings season will again have the potential to help define the race for the White House, but as it stands right now, it’s as if we’re just seeing a little more certainty creep into play and that’s something markets will be keen to cheer.”

Also on Monday, investors were mulling over Sunday’s presidential debate. Webb said that while the debate might not have provided the electorate with the substantive direction it was looking for, in terms of financial markets it seems like another nod for Clinton.

In corporate news, Deutsche Bank was in focus as investors were left disappointed that chief executive John Cryan did not strike a deal with US authorities over the $14bn Department of Justice fine for mis-selling mortgage-backed securities, after he attended the International Monetary Fund and World Bank’s autumn meetings in Washington.

The Financial Times reported on Monday that Deutsche was given special treatment in the European bank stress tests carried out over the summer.

According to the FT, the lender, which has been using the results of the July stress tests as evidence of its healthy finances, was boosted by a special concession agreed by its supervisor, the European Central Bank.

The third-quarter earnings season will kick off with aluminium producer Alcoa on Tuesday.

There are no major US data releases due but investors will watch out for a speech by Chicago Fed President Charles Evans in Australia.