US pre-open: Stocks seen muted as investors eye Fedspeak

US futures pointed to a muted open on Wall Street on Monday following a solid performance last week.

At 1205 GMT, Dow Jones Industrial Average futures were up 0.1%, while S&P 500 and Nasdaq futures were down 0.1%.

Craig Erlam, senior market analyst at Oanda, said: "After an impressive opening week to the year, US futures are pointing to a flat open on Wall Street on Monday, with investors eyeing a few key data points and the start of fourth quarter earnings season.

"Heading into another earnings season, there is a strong sense of optimism in the markets, with the Dow having blown past 25,000 with relative ease before ending the week with a record close. While we’re currently looking at a flat start, the US may take some direction from Asia and Europe as we approach the open with both regions having posted/posting moderate gains at the start of the week."

Investors will be watching out for speeches from Atlanta Fed President Raphael Bostic at the Rotary Club and Boston Fed President Eric Rosengren, who is due to take part in a panel discussion on whether the Fed should stick to a 2% inflation target.

Erlam said: "Perhaps today’s Federal Reserve speakers will provide the catalyst for a move higher in the dollar, with John Williams, Raphael Rostic and Eric Rosengren all making appearances. Williams and Rostic will both be voters on the FOMC this year and so their views will be very closely monitored and could have an impact, although with Jerome Powell set to succeed Janet Yellen as Chair next month and a number of roles still to be filled, there remains an element of uncertainty when it comes to Fed policy going forward.

"While there is a number of key data releases that will be closely monitored this week, the bulk of these will come later on, most notably US retail sales and CPI inflation on Friday. Friday will also mark the start of earnings season which will be a key focus for investors over the coming weeks now that tax reform is over the line."

In corporate news, Nvidia was on up in pre-market trade after the chip maker announced a partnership with Uber to provide the company with self-driving hardware.

Elsewhere, biotech company Celgene was also in the black after announcing a deal to buy biotechnology group Impact Biomedicines for up to $7bn.

Lululemon was likely to be in focus after lifting its fourth-quarter profit and revenue forecasts.