US pre-open: Stocks seen touch higher as investors eye more Fedspeak

Stocks on Wall Street looked set for a slightly firmer open on Tuesday, as investors eyed speeches from Federal Reserve officials.

At 1225 BST, Dow Jones Industrial Average and S&P 500 futures were flat, but Nasdaq futures were up 0.2%. On Monday, the S&P 500 and the Dow closed at record highs thanks to a rebound in the technology sector. Facebook, Netflix, Apple and Alphabet all racked up healthy gains, with Amazon trading at a fresh all-time high.

Accendo Markets analysts Mike van Dulken and Henry Croft said: "A positive opening call comes after US bourses closed higher…thanks to a tech resurgence suggesting the recent sector selloff may have been more ‘tech check’ than the ‘tech wreck’ some had forecast. "

On Monday, Chicago Fed President Charles Evans said it might be worthwhile for the Fed to wait until the year end to decide whether another interest rate hike is warranted. Speaking to Money Marketeers of New York University, he said: "It remains to be seen whether there will be two rate hikes this year, or three, or four or exactly when we start paring back reinvestments of maturing assets. Ultimately, our exact actions will appropriately be driven by how events transpire to influence the outlook for achieving our policy goals."

With this in mind, investors will be keen to see what Boston Fed President Eric Rosengren and Dallas Fed President Rob Kaplan say when they speak later in the day in Amsterdam and San Francisco, respectively.

House Speaker Paul Ryan's first major speech on tax reform at 1745 BST will also be watched closely amid expectations he will express confidence that the Republicans can deliver on their pledges of a major tax overhaul this year.

In corporate news, Parexel International was trading up 8% in pre-market trade after agreeing to be bought by Pamplona Capital Management in a deal valued at $5bn.

Elsewhere, Lennar was up 4% in pre-market trade following better-than-expected second-quarter earnings and revenues.

In currency markets, the dollar was trading up 0.3% against the pound at 0.7871 as sterling took a hit after Bank of England governor Mark Carney signalled that it wasn't the right time for a rate hike. The dollar was flat against the euro and the yen at 0.8971 and 111.56, respectively.