US pre-open: Stocks to edge up ahead of more earnings as shutdown rumbles on

US stocks looked set to edge higher at the open on Thursday as investors eyed the release of more earnings reports.

At 1220 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.1% and 0.2%, respectively, and Nasdaq futures were 0.5% firmer.

James Hughes, chief market analyst at AxiTrader, said: "High profile US earnings news has been largely upbeat with Ford, IBM and P&G impressing yesterday and helping lift equity indices in general, although the auto maker missed profit estimates after higher than expected costs.

"Earnings season continues today with a number of airlines plus Starbucks amongst the standouts. After Delta’s assessment of the impact of the US government shut down on its business last week, today has the potential to see further insight as to the cost of the ongoing stand off on Capitol Hill.

"There are two competing bills being debated by US lawmakers today in a bid to break the funding deadlock, although neither is expected to get the necessary majority in Senate to see matters progress. With investors becoming a little more nervous over the outlook for the US economy, equities could start reacting a little more directly to the political agenda."

President Trump's State of Union address was cancelled after House speaker Nancy Pelosi said she would not allow the speech to go ahead until the shutdown has ended.

Meanwhile, trade relations between the US and China remained on investors' minds as the Chinese commerce ministry said that there would be in-depth talks between the two on economic and traide issues during Chinese Vice Premier Liu He’s US visit next week.

In corporate news, Bristol-Myers shares could be active after the release of its fourth-quarter numbers and after the company said it withdrew its application for US approval for a combination of its cancer immunotherapy drugs Opdivo and Yervoy as an initial treatment for advanced lung cancer while the drugmaker works to collect more data.

Netflix was a touch lower in pre-market trade after rival Hulu said it would be cutting the price of its base, ad-supported subscription plan in February to $5.99 a month from $7.99.

McCormick was likely to be in focus after its fourth-quarter earnings missed analysts' expectations, while Southwest Airlines flew higher in pre-market trade as it posted better-than-expected fourth-quarter profit.

On the data front, initial jobless claims are at 1330 GMT, while Markit's manufacturing PMI for January is at 1445 GMT.