US pre-open: Stocks seen touch firmer as investors digest Fed

US futures pointed to a marginally higher open on Wall Street as investors continued to digest a hawkish rate hike from the Federal Reserve, ahead of a slew of data releases.

At 1125 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.2%, while Nasdaq futures were 0.1% firmer.

Meanwhile, oil prices were in the black, with West Texas Intermediate up 0.2% at $51.16 a barrel and Brent crude up 0.7% to $54.27.

Jamieson Blake, retail sales manager at ADS Securities in London, said: “Last night’s FOMC meeting was largely as expected – maybe a little more hawkish on the outlook for rates next year, but at least so far this doesn’t appear to have completely derailed the bullish sentiment in equities. Granted, we’ve seen a degree of marking back, but futures are currently pointing to a stronger open, suggesting that a test of 20,000 for the Dow still can’t be discounted, even if the proverbial headwinds are building.

“We have a flurry of economic releases due before the opening bell and the stand out here is likely to be the inflation print. The hawkish assessment of three rate hikes for 2017 by the Fed could suggest that this will come in a little warmer than the 0.2% which had been forecast, whilst manufacturing PMI shortly after the open will also be in focus – although by all accounts this figure will be that bit more interesting once Trump takes office and the political change has a chance to filter through to business.”

The consumer price index, initial jobless claims, current account balance and Empire manufacturing are at 1330 GMT, along with the Philadelphia Fed index. The NAHB housing market index is at 1500 GMT.

On Wednesday, the Fed raised the range of its main policy rate to between 0.50% and 0.75% and signalled that more interest rate increases were on the cards for next year than it had suggested at the meeting in September. Rate-setters were unanimous in their decision to tighten policy.

According to the newly-submitted 'dot-plot' graphs of interest rates projections from the Federal Reserve´s board members and regional Fed presidents, the median expectation is for three quarter-point interest rate hikes in the following year, up from two previously.

A further three hikes were projected in 2018, followed by another three in 2019.

In corporate news, Yahoo was weaker in pre-market trade after the company said that more than one billion user accounts may have been affected by a hack dating back to 2013.

Elsewhere, Mondelez shares were up 5% in pre-market trade following a report late on Wednesday that Kraft Heinz is planning to acquire the company. However, there were also reports that the two are not currently in deal talks. Kraft Heinz shares were also higher in pre-market trade.