US pre-open: Stocks to edge lower ahead of Trump and Kim meeting
Updated : 12:40
US stock futures pointed to a slightly weaker open on Wall Street on Wednesday as investors eyed a summit between US President Trump and North Korean leader Kim Jong Un and another testimony from Federal Reserve Chairman Jerome Powell.
At 1230 GMT, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all down 0.2%.
Trump is due to meet Kim Jong Un in Vietnam to discuss the denuclearisation of the Korean Peninsula. Meanwhile, geopolitical tensions were also expected to weigh on sentiment after Pakistan said it shot down two Indian jets and carried out air strikes in Kashmir.
Another testimony from Fed chair Jerome Powell was also on the cards, after he reiterated on Tuesday that the Fed needs to be "patient" when it comes to policy.
Lukman Otunuga, research analyst at FXTM, said: "Although Powell delivered an encouraging assessment of the economy, he did acknowledge the multiple headwinds both domestically and externally. A string of disappointing economic reports from the United States have triggered concerns over growth prospects, while geopolitical risks and fears of plateauing global growth are compounding the uncertainty."
In corporate news, shares in retailer Lowe’s looked set to be active as its fourth-quarter sales missed analysts’ expectations.
Consumer electronics retailer Best Buy saw its shares rise more than 10% in pre-market trade as its earnings and sales for the fourth quarter topped analysts’ expectations.
Chesapeake Energy was also sharply higher ahead of the open after it posted a 57% jump in quarterly profit.
Dean Foods was in the red, however, as the food and beverage group reported a wider-than-expected quarterly loss and said it was exploring options for the company, including a sale.
Weight Watchers tumbled nearly 36% in pre-market trade after its earnings late on Tuesday fell short of expectations.
On the data front, wholesale inventories, the goods trade balance and durable goods orders are at 1330 GMT. Pending home sales and factory orders are at 1500 GMT.