US pre-open: Stocks set for another positive session on Trump tax plans

US futures pointed to another positive session on Wall Street a day after President Donald Trump promised to make a “phenomenal” announcement about his tax plans soon.

At 1125 GMT, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all 0.1% firmer. On Thursday, indices reached record closes after Trump said he was planning the most ambitious tax reform since the Reagan era in the next few weeks, although he stopped short of giving any details.

White House spokesman Sean Spicer said the President would outline a comprehensive tax plan, including cuts for individuals and businesses.

Oanda’s Craig Erlam said; “US equity markets are looking to build on Thursday’s record highs in all three major indices, with futures indicating another higher open on Wall Street today.

“US President Donald Trump has started making the right noises again as far as markets are concerned, with Thursday’s promise of a ‘phenomenal’ tax announcement in the coming weeks certainly hitting all the right notes. Investors have become a little apprehensive in recent weeks due to the unpredictable nature of Trump’s policies and the timing of the announcements which has taken the edge of moves we saw heading into year end.

Investors were likely to continue keeping a close eye on Trump on Friday, as he is due to meet with Japan’s Prime Minister, Shinzo Abe.

Erlam said: “A number of topics are due to be discussed at the meeting, many of which Trump was critical of, when it comes to Japan, throughout his campaign and since. One of the major concerns with Trump’s Presidency is his relationships with other leaders and whether it will damage trade and cooperation, something we’ll hopefully have a better idea of after today’s meeting.”

Meanwhile, oil prices ticked higher, with West Texas Intermediate up 0.8% at $53.45 a barrel and Brent crude up 1% at $56.20.

On the corporate front, Mead Johnson Nutrition was likely to be in focus after London-listed consumer goods group Reckitt Benckiser announced the acquisition of the baby food maker for $17.9bn.

Nvidia Corp was trading higher in pre-market trade, having fallen late on Thursday despite reporting record revenue growth.

Candy Crush Saga maker Activision Blizzard surged in pre-market trade after announcing a stock buyback and the lifting of its dividend, despite disappointing quarterly numbers.

On the macro calendar, the US import price index is at 1330 GMT, while the Michigan consumer sentiment index is at 1500 GMT.