US pre-open: Stocks seen touch weaker ahead of inflation, retail sales data

US futures pointed to a slightly lower open on Wall Street as investors awaited the release of retail sales and inflation data.

At 1205 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all down 0.2%.

Oanda analyst Craig Erlam said: "With the Federal Reserve looking to raise interest rates twice more this year and markets eyeing June for the next hike - 83% priced in based on Fed Funds futures - today’s inflation and consumer figures are going to be closely followed. While CPI may not be the Fed’s preferred measure of inflation, it will offer insight into whether inflationary pressures are building or the trend of the last couple of months is continuing. That may prove to be a concern for the Fed ahead of the June meeting.

"We’ll also get insight into the US consumer, a very important part of the economy, with the release of retail sales data for April and UoM consumer sentiment data for May being released. It’s been a disappointing couple of months for the US consumer but we’re expecting a rebound this month, with sales seen rising by 0.6%, while consumer sentiment is seen holding at 97, very close to its multi-year highs."

Retail sales are at 1330 BST, along with the consumer price index, while Michigan consumer sentiment is at 1500 BST.

Elsewhere, investors will eye a speech from Chicago Fed President Charles Evans who is due to appear on a panel on economy and interest rates at the ACI financial markets conference in Dublin at 1400 BST. Philadelphia Fed President Patrick Harker will speak at Drexel University in Philadelphia at 1730 BST.

Erlam said Evans' speech could offer some insight into the June meeting, with him being among the more dovish voting members of the committee. "Should he allude to a rate hike next month then it would suggest there’s relatively little opposition and markets are relatively well positioned, although there is still some room for it to be increasingly priced in."

In corporate news, Eli Lily shares were higher in pre-market trade after it said a late-stage study of a migraine treatment met its primary goals, but international petroleum service company Tidewater tanked after it announced a bankruptcy plan.

JC Penney earnings were due before the open.