US pre-open: Stocks seen slightly lower ahead of inflation data

US futures pointed to a slightly weaker open on Wall Street as investors eyed the release of key inflation figures later in the day.

At 1125 BST, Dow Jones Industrial Average and S&P 500 futures were down 0.3%, while Nasdaq futures were off 0.2%.

CMC Markets’ Jasper Lawler said: “US stocks look set for a lower open on Friday in a pullback from big gains made yesterday ahead of consumer inflation and sentiment data.

"The US stock market has begun the early stages of what could be a recovery. Five-month highs for Apple after announcing the iPhone 7 has sold out and poor US economic data which should keep the Fed at bay is helping sentiment.”

Meanwhile, oil prices retreated on the back of reports of increased exports from Libya and Nigeria. West Texas Intermediate was down 1.3% to $43.36 a barrel and Brent crude was 1.4% weaker at $45.95.

In corporate news, technology giant Apple was a little lower in pre-market trade following strong gains in the previous session as its new Iphone 7 went on sale.

Elsewhere, enterprise software firm Oracle Corp slid after its quarterly profit and revenue reported late on Thursday fell short of estimates.

Meanwhile, US-listed shares of Deutsche Bank tanked after the US Justice Department asked the German bank to pay up to $14bn to settle civil claims regarding its handling of mortgage-backed securities that contributed to the 2008 financial crisis.

Vaccine company Novavax Inc. tumbled after saying late on Thursday that one of its lung infection vaccines did not meet endpoints in a late-stage clinical trial.

On the data front, the consumer price index is at 1330 BST and University of Michigan sentiment is at 1500 BST.

Societe Generale said: “We look for a 0.1% rise in the headline CPI, but the core rate may have increased by only 0.1% again – which could give further ammunition to doves on the FOMC that September is not the time to raise rates.

“Another fall in airfares is likely, along with soft numbers for used cars and apparel. Hotel rates probably bounced back, though, after the surprising 2.7% slide in July. Within the non-cyclical components, medical care and recreation may have cooled. The energy index could have inched down by 0.1% on a SA basis. Food prices were likely flat in the month.”