US pre-open: Stocks seen touch higher ahead of inflation data, Yellen

US futures pointed to a marginally higher open on Wall Street as investors eyed the release of inflation data and a speech by Federal Reserve chair Janet Yellen.

At 1150 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.1%, while Nasdaq futures were 0.3% firmer.

Meanwhile, oil prices pushed higher, with West Texas Intermediate up 1.2% to $41.12 a barrel and Brent crude 1.4% stronger at $47.30.

Jamieson Blake, retail sales manager at ADS Securities London, said: “Wall Street is currently eyeing a rather quiet start to the day’s trade but it’s worth bearing in mind that there’s a lot of data to come before the opening bell, whilst Janet Yellen’s testimony in front of Congress will also be under scrutiny. The Trump-inspired rally seems to be struggling to find another leg higher so an inflation print that sits in the so-called Goldilocks zone of not too hot and not too cold would be well received by the market.

“What’s more, with expectations being maintained of a December rate hike and with the new administration’s outlined economic policies having the potential to deliver a fair slug of inflation, the tone of Janet Yellen’s delivery will be closely followed.”

In corporate news, Staples rose in pre-market trade following the release of its third-quarter results.

Earnings were also due from Wal-Mart and Best Buy before the opening bell, while Gap and Applied Materials were among the companies slated to report after the close.

On the data front, the consumer price index, housing starts and initial jobless claims are at 1330 GMT. Yellen’s testimony before Congress is at 1500 GMT.

Societe Generale expects headline inflation to rise by 0.2 percentage points to 1.7% in October, the highest reading since August 2014.

“The energy index may have increased 2.9% in October, making up for likely flat food prices. We also look for a 0.23% increase in core inflation, which would leave the yoy rate at 2.2%, but only slightly below rounding up to 2.3%. Meanwhile, we look for a sharp bounce on housing starts in October, which should increase 12.7% mom to 1.180 million units on an annualised basis.”

As far as Yellen’s testimony is concerned, the bank does not expect anything new from her and said she was likely to repeat that the case for a rate hike has strengthened.