US pre-open: Stocks seen slightly higher with retailers in focus
Updated : 10:51
US futures pointed to a slightly firmer open on Wall Street following losses in the previous session, although weaker oil prices were likely to cap gains.
At 1050 BST, Dow Jones Industrial Average and S&P 500 futures were up 0.2%, while Nasdaq futures were 0.3% firmer.
CMC Markets’ Jasper Lawler said: “US stocks look set for a higher open in a rebound from yesterday’s weak retailer earnings and oil-induced sell-off. Retail remains on the agenda for Thursday with results from Macy’s, Kohl’s and Nordstrom.”
At the same time, oil prices retreated after data from the US Energy Information Administration on Wednesday showed a build in crude inventories and following record Saudi Arabian production. West Texas Intermediate was down 0.5% to $41.49 a barrel and Brent crude was off 0.3% at $43.91.
In corporate news, Valeant Pharmaceuticals tumbled in pre-market trade on news of a federal investigation into whether the company defrauded insurers.
Shake Shack was also firmly in the red after it posted weaker than expected second-quarter sales late on Wednesday.
On the upside, Kura Oncology rocketed in pre-market trade after it said late on Wednesday that a phase 2 trial of one of its cancer drugs had shown promising results.
Alibaba, Macy’s and Kohl’s are due to report earnings before the bell, while Nordstrom will update the market after the close.
Chris Beauchamp, senior market analyst at IG, said: “US trading will be dominated by Alibaba’s numbers this afternoon, as the e-commerce giant provides its latest earnings report. The post-IPO disappointment appears to have worn off, with the shares up nearly 50% since the February lows.
“However, now the firm needs to improve on its reporting metrics, plus show healthy expansion in Southeast Asia, and investors will not be happy if it falls short on either of these tasks.”
On the data front, initial jobless claims are out at 1330 BST. The figures are expected to show a drop to 265,000 for the week ended 6 August from 269,000 the week before.