US pre-open: Futures point to positive open ahead of inflation data

The Dow Jones Industrial Average is expected to open up approximately 78 points, while the S&P 500 and the Nasdaq are set to begin the session seven and 19 points higher respectively.

CPI in focus

At 1330 GMT investors will look to a reading on consumer prices for October, with analysts expecting a 0.2% gain on a month-on-month basis. Core inflation is expected to increase by the same margin.

“While the Federal Reserve has shown a willingness to overlook the current low levels of inflation, the inflation numbers could still be key when it comes to its decision on whether or not to hike rates in December,” said Oanda’s senior market analyst Craig Erlam.

“Any sign that deflationary pressures are intensifying could encourage policy makers to hold off for a month or two, particularly if these pressures are being seen in areas that are not viewed as economically stimulative.”

Reports on capacity utilisation and industrial production for October are released at 1415 GMT, with the National Association of Home Builders set to publish its November housing market index at 1500 GMT.

Market participants will also hear from a number of Federal Reserve officials, with Dallas Fed President Rob Kaplan speaking on economic conditions and Fed policy in Houston at 1700 GMT. Meanwhile, Fed governor Jerome Powell and Daniel Tarullo will speak at 1815 GMT and 2030 GMT respectively.

In company news, retailing giant Wal-Mart will report ahead of the bell, while Home Depot gained 0.70% in pre-market trading after posting solid quarterly sales.

Meanwhile, regulatory filings showed David Einhorn boosted its stake in Apple, General Motors and Michael Kors Holdings. Shares in the stocks gained 0.49%, 2.51% and 1.72% respectively ahead of the bell.

Elsewhere, most Asian stocks advanced as they recovered from the widespread losses they suffered in the previous session, while European equities were firmly in the back, as energy stocks continued to gain.

The dollar was broadly flat against the yen and the pound but hit a fresh seven-month high against the euro, gaining 0.24% against the European currency, as investors speculate the terrorist attacks in Paris might see the European Central Bank loosen up its monetary policy next month.

Spot gold lost 0.27% to $1,079.84, while oil prices slid, with West Texas Intermediate falling 1.24% to $41.23 a barrel and Brent down 0.69% to $44.26 a barrel.