US pre-open: Futures advance as Wall Street braces for deluge of economic data

The Dow Jones Industrial Average is expected to open up approximately 50 points, while the S&P 500 and the Nasdaq are set to begin the session five and 12 points higher respectively.

Raft of data ahead

With Wall Street closed on Thursday and trading closing at 1pm Eastern on Friday (1800 GMT), investors will have plenty of data to analyse on Wednesday, starting with a report on weekly jobless claims, which is scheduled for release at 1330 GMT.

Analysts expect unemployment benefits to have declined to 271,000 in the week to 21 November.

At the same time, a report on consumer spending and personal income for October is also released, alongside October data for durable goods and core inflation.

"While it is difficult to pick the most important among these [reports], the personal consumption expenditure price index surely stands out, given that it is the Fed’s preferred inflation measure," said Oanda's senior market analyst Craig Erlam.

"The labour market is looking more than healthy enough to warrant a rate hike, which means all focus in the next few weeks will be on the outlook for inflation."

The Federal Housing Agency report on September home prices is scheduled for release at 1400 GMT, while a preliminary reading of the Markit composite and services purchasing managers' index for November are on tap at 1445 GMT.

Shortly after that, at 1500 GMT, a reading on new home sales for October is scheduled for release, as is a reading on consumer sentiment for November.

"With the Dow seemingly returning to its strong figure-averse fluctuations in the past few days of trading it will be interesting to see how the index will perform before it takes the day off on Thursday," said Spreadex's financial analyst Connor Campbell.

In company news, Hewlett-Packard climbed 2.88% in pre-market trading, despite posting weak quarterly sales late on Tuesday, while biotech group Baxalta jumped 6.38% ahead of the bell after a report suggested Dublin-based Shire was preparing a fresh takeover bid.

Elsewhere, Asian stocks declined amid fresh geopolitical tensions, while European equities gained ground and oil prices relinquished overnight gains. West Texas Intermediate fell 1.16% to $42.38 a barrel, while Brent crude lost 1.23% to $45.56 a barrel.

The dollar was again on the front foot against the main currencies, gaining 0.54% against the euro and rising 0.13% and 0.10% against the yen and the pound respectively, while spot gold shed 0.22% to $1,073.21.