US pre-open: Stocks seen touch higher; retailers eyed on Black Friday

US futures pointed to a marginally higher start on Wall Street, where volumes are expected to be light, with many traders unlikely to return to their desks until Monday following the Thanksgiving holiday.

At 1100 GMT, Dow Jones Industrial Average futures were up 0.2%, while S&P 500 and Nasdaq futures were 0.1% firmer. Markets were shut on Thursday for Thanksgiving and will be open for just a half day as Black Friday gets underway.

Meanwhile, oil prices drifted lower as investors continued to look to next week’s OPEC meeting in the hope that a production cut will be agreed. West Texas Intermediate was down 0.9% to $47.55 a barrel and Brent crude was 1% weaker at $48.52.

In currency markets, the dollar was down 0.4% against the euro, 0.5% versus the yen and 0.1% against the pound, easing back a little after hitting new 13-year highs on its trade-weighted index on Thursday.

Ipek Ozkardeskaya, senior market analyst at London Capital Group, said: “Online commerce businesses will be under close watch, as half of Black Friday sales are expected to occur online. Higher volumes and greater volatility are expected, especially on retailers’ and e-commerce giants’ stock prices, such as Amazon, Alibaba, Walmart.

“Nonetheless, traders should also be prepared to downside risks, given that Black Friday has already been broadly priced in. In the dirt of major surprises in volumes, the trading scheme could well turn into a buy-the-rumour-sell-the-fact, given that the oversold conditions in the US equity markets hints at a correction sooner rather than later.”

In corporate news, Johnson & Johnson edged higher following a report it has made a takeover bid for Swiss drug maker Actelion. According to Bloomberg, which cited people familiar with the matter, deliberations are still at an early stage following J&J’s initial offer and Actelion is working with an adviser to explore options.

On the data calendar, wholesale inventories are at 1330 GMT, while Markit’s services purchasing managers’ index is at 1445 GMT.