US pre-open: Stocks seen touch higher as investors digest UK election, Comey

US futures pointed to a mildly higher open on Wall Street on Friday as investors mulled over the result of the UK general election and the testimony by former FBI boss James Comey in the previous session.

At 1110 BST, Dow Jones Industrial Average futures were up 0.2%, while S&P 500 and Nasdaq futures were 0.1% higher.

Across the pond, Theresa May was due to go to Buckingham Palace at 1230 BST to seek permission from the Queen to form a government in partnership with Northern Ireland's Democratic Unionist Party after the Tories failed to get a majority in the general election.

With 649 out of 650 seats declared, the Conservatives had 318 seats, while Labour had 261, meaning May has fallen short of the 326 seats needed to deliver a majority Conservative government in the 650-seat House of Commons. Counting in one West London constituency has been suspended, with a third re-count necessary after the results were too close to call.

On Thursday, US stocks eked out gains after Comey testified before the Senate panel, saying President Trump fired him to undermine the FBI's investigation into Russia's alleged involvement in the presidential elections.

"I know I was fired because of something about the way I was conducting the Russia investigation was in some way putting pressure on him, in some way irritating him, and he decided to fire me because of that," Comey said.

Richard Perry at Hantec Markets said: "The reaction of Wall Street to the Comey testimony would certainly suggest that the bulls are happy that there was no 'smoking gun' that would drive a potential impeachment of President Trump. The market bounced on Wednesday as Comey’s opening statement had been released.

"Despite Comey’s testimony hardly being complimentary of President Trump (and effectively calling his integrity into question), perhaps there is not enough for grounds of impeachment. Yesterday’s move on the Dow reflects this. An initial run higher only to be retraced into the close. Nothing to see here, so no need to be a factor. This comes with the technical outlook of still buying into weakness, with the breakout band of old resistance between 21,070/21,112 the basis of new support now. Momentum remains strong and the bulls remain in control and although a new all-time high of 12,265 was retraced, the bulls will be eying this again. The key support near term is at 20,943."

On the data front, wholesale inventories are due at 1500 BST.