US pre-open: Stocks seen weaker as investors keep an eye on oil

US futures pointed to another day of losses on Wall Street on Wednesday.

At 1150 BST, Dow Jones Industrial Average futures were flat, while S&P 500 and Nasdaq futures were down 0.2% and 0.3%, respectively

Meanwhile, oil prices were down but off the lows seen on Tuesday, when prices hit a nine-month low and entered bear territory. West Texas Intermediate was down 0.4% to $43.34 a barrel and Brent crude was off 0.5% to $45.77. The latest oil inventory figures are due from the Energy Information Administration at 1530 BST.

Oanda analyst Craig Erlam said: "US indices are seen pulling a little further away from record high levels on Wednesday, as we appear to see a slight shift in risk appetite although there are no signs at this stage of a broader trend developing.

"Oil has stabilised on Wednesday but may remain under pressure in the coming days, having fallen sharply on Tuesday despite there being no clear fundamental trigger for the move. Brent and WTI did find some support around $45.50 and $43, respectively, levels that have prompted similar reactions over the course of the last year. With bearish sentiment only appearing to grow though, you have to wonder whether these levels can hold on this occasion or whether $40 could be hit or even breached, in both cases.

"For the latter to happen, we may need to see clear evidence that the production cut is either insufficient in clearing the excessive stocks or that compliance with the deal is in doubt. Inventory data from EIA will offer some insight into the success of the cut, with another small drawdown expected. API reported a similar number on Tuesday, claiming inventories fell by 2.72 million last week and while this has been a relatively good guide in the past, we did see last week that it isn’t always reliable."

In corporate news, software company Red Hat was sharply higher in pre-market trade after its quarterly earnings late on Tuesday beat analysts' expectations.

Adobe Systems was also in the black in pre-market trade after its quarterly profit late on Tuesday came in better than expected, while La-Z-Boy shares could be active after it released estimate-topping earnings late in the previous session.

Software company Oracle Corp is slated to report earnings after the close.

On the macroeconomic front, US existing home sales are due at 1500 BST.