US pre-open: Stocks seen touch higher; Coach, Valeant in focus

US futures pointed to a marginally higher open on Wall Street as investors awaited fresh cues.

At 1215 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all up 0.1%.

David Morrison, senior market strategist at SpreadCo, said: “US stock index futures are pointing to a firmer open later today. But so far this week there’s been a definite fading of the upside move which followed Friday’s positive surprise on US payrolls.

“We may be set a few quiet days now as there’s little out data-wise until Friday’s US retail sales and PPI numbers. However, traders will be keeping a close eye on tomorrow’s US crude oil inventories from the Energy Information Administration. While oil has bounced back from its recent sub-$40 move, it still looks vulnerable to further downside pressure. An unexpected inventory build could trigger selling. This is important as lower crude prices increase fears of corporate bond defaults which leads to investors cutting their exposure to equities.”

At the same time, oil prices reversed earlier losses to trade higher, with West Texas Intermediate up 0.5% at $43.23 a barrel and Brent crude 0.2% firmer at $45.51.

In corporate news, oil and gas firm Resolute Energy surged in pre-market trade after reporting a narrower loss for the second quarter.

Valeant Pharmaceuticals rose sharply in pre-market trade. Although the company’s second-quarter earnings and revenue missed expectations, investors were reassured by the fact it reaffirmed its guidance for the full year.

Luxury accessories retailer Coach was higher after its fourth-quarter earnings surpassed analysts’ estimates.

Meanwhile, Gap shares continued to slide after the retailer said late on Monday that its same-store sales dropped 4% in July and 2% in the second quarter.

Honeywell International was likely to be in focus following a report the company is in talks to acquire JDA Software Group.

Still to come, earnings are due from Fossil, Yelp and Walt Disney.

On the macroeconomic calendar, nonfarm productivity is at 1330 BST while wholesale inventories are at 1500 BST.