US pre-open: Stocks seen up, Nasdaq to outperform on Apple earnings

US futures pointed to a positive open on Wall Street, with the tech-heavy Nasdaq set to outperform following well-received earnings from Apple, as investors eyed the latest rate decision from the Federal Reserve.

At 1130 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.2%, while Nasdaq futures were 0.5% higher.

Meanwhile, oil prices were on the front foot, with West Texas Intermediate and Brent crude up 0.6% to $53.05 and $55.84 a barrel, respectively.

Oanda’s Craig Erlam said: “US equity markets are poised to open a little higher on Wednesday as we await a selection of economic data and the first FOMC monetary policy decision since Donald Trump’s inauguration.

“Trump and his aides have made efforts in recent days to talk down the greenback which has to an extent been successful, with the dollar index having slipped back below 100 to its lowest level since the December meeting. This comes alongside markets also pricing in only two hikes this year – rather than the three that the Fed has outlined – with the next coming in June.

“In the absence of a press conference with Chair Janet Yellen following today’s announcement, investors will be left to pour over the statement that it released alongside the decision to see whether views have changed on the path of interest rates this year since the last meeting. Given that the Fed is none-the-wiser when it comes to Trump’s spending and tax plans, I would imagine the views of policy makers will be unchanged since the middle of December and they will reiterate an intention to hike three times.”

On the corporate front, Apple shares pushed higher in pre-market trade after the technology giant said on Tuesday that net sales in the last three months of 2016 were up 3% on the previous year to $78.4bn, marking the strongest quarter ever. Other tech stocks got a boost, with Facebook and Alphabet also in the black

Automatic Data Processing, Tupperware Brands, Marathon Oil and Altria Group were slated to report earnings ahead of the bell, with MetLife and IAC/InterActiveCorp due to release numbers after the close.

On the economic calendar, investors will be eyeing the ADP employment report at 1315 GMT, as it’s widely seen as a precursor to Friday’s non-farm payrolls report. Markit’s manufacturing purchasing managers’ index is at 1445 GMT, while the ISM manufacturing PMI is at 1500 GMT.