US pre-open: Stocks set for muted open; Apple in focus

US futures pointed to a muted open on Wall Street as investors looked for more clues on rate hikes from Federal Reserve officials, with technology giant Apple set to unveil its latest iPhone.

At 1045 BST, Dow Jones Industrial Average and S&P 500 futures were flat, while Nasdaq futures were up 0.2%.

CMC Markets’ Jasper Lawler said: “Following a record close for the Nasdaq, US stocks look set to pullback at Wednesday’s open with Apple shares in the spotlight ahead of its latest product launch and shares of Chipotle getting a boost from a stake taken by Bill Ackman."

At the same time, oil prices advanced. West Texas Intermediate was up 0.8% at $45.20 a barrel and Brent crude was up 1% at $47.72.

On Tuesday, stocks eked out small gains as a weak ISM report on the services sector prompted investors to scale back their rate hike expectations.

The ISM services index fell to 51.4 in August from 55.5 the month before, missing expectations for a reading of 55.0 and hitting its lowest level since February 2010. A reading above 50 indicates expansion.

Investors will be looking ahead to testimonies from Richmond Fed President Jeffrey Lacker and Kansas City Fed President Esther George at the House Financial Services Panel on ‘Governance, Monetary Policy and Economic Performance’ later in the day. Also of interest, the Fed’s Beige Book is due to be released at 1900 BST.

In corporate news, Apple was likely to be in focus as it prepares to unveil its new iPhone7 at an event in San Francisco.

Elsewhere, Chipotle Mexican Grill rose in pre-market trade after Bill Ackman’s Pershing Square Capital Management said late on Tuesday that it has bought a 9.9% stake in the company.

On the downside, Advanced Micro Devices slid after it announced plans to raise more than $1bn in a stock and debt offering.