US pre-open: Stocks seen slightly lower ahead of busy week

US futures pointed to a slightly lower open on Wall Street as investors eye a busy week in terms of earnings releases.

At 1110 BST, Dow Jones Industrial Average and S&P 500 futures were down 0.3%, while Nasdaq futures were off 0.4%.

Meanwhile, oil prices retreated after Baker Hughes data showed the number of active oil rigs in the US last week rose by four to 432. West Texas Intermediate was down 0.3% to $50.19 a barrel and Brent crude was 0.1% lower at $51.90.

Jamieson Blake, retail sales manager at ADS Securities London, said: “Wall Street is eyeing a softer start to the week as traders brace themselves for a flood of earnings releases as the quarterly reporting season gets into full flow. It certainly hasn’t been an overly positive start with Alcoa and two of the major banks both disappointing last week, so today’s highlights – including Bank of America before the open plus IBM and Netflix after the close – will also be under a fair degree of scrutiny.

“US industrial production data is set for release just before the market open and although this may sit some way down the list in terms of key US economic announcements due this week – eclipsed by the inflation reading and also the final Presidential debate – again it could offer some useful direction, especially if the forecast return to growth doesn’t materialise in the September figure. The watchword remains policy tightening at the Federal Reserve and critically, any clues as to what we should expect here will be quickly seized upon by the market. A November hike – whilst still unlikely – remains a possibility that cannot be ruled out.”

On Friday, Federal Reserve chair Janet Yellen said in a speech that policymakers need to consider the potential for a “high pressure economy” and let inflation continue to rise. Her comments boosted the dollar, which hit its highest level since March.

On the corporate front, electric car maker Tesla Motors could be in focus after chief executive Elon Musk tweeted that the company has delayed Monday’s product unveiling to Wednesday as it needs “a few more days of refinement”.

Investors will also turn their attention to a speech by Fed vice chairman Stanley Fischer at the Economic Club of New York.

Oanda’s Craig Erlam said: “Fischer is generally among the more dovish members of the Fed but has indicated at times that he is close to supporting a rate hike soon. I think he’s likely to vote in line with Janet Yellen, who has repeatedly hinted at December. It will be interesting to see if he offers any insight into this today having kept his cards quite close to his chest on this as of late.”

On the macroeconomic calendar, Empire State manufacturing and industrial production are at 1330 BST and 1415 BST, respectively.