US pre-open: Stocks seen flat as investors eye rate announcement, earnings
US futures pointed to a broadly flat open on Wall Street as investors awaited the outcome of the Federal Reserve’s two-day policy meeting on Wednesday and looked to a slew of earnings releases.
At 1115 BST, Dow Jones Industrial Average and S&P 500 futures were down 0.1%, while Nasdaq futures were unchanged.
At the same time, oil prices were in the red. West Texas Intermediate was down 0.7% at $42.81 a barrel and Brent crude was off 0.4% at $44.56.
The Federal Reserve’s rate announcement is due on Wednesday.
Ipek Ozkardeskaya, senior market analyst at London Capital Group, said: “We expect the Fed to maintain the status quo and to join the wait-and-see camp amid post-Brexit uncertainties.
“The FOMC will likely emphasise the importance of future economic data and deliver a dovish accompanying statement to grant its support to the markets. The S&P500 and the Dow could surf on a fresh wave of cheap money, should the Fed leaves the punchbowl on the table.”
Later in the week, the Bank of Japan will announce its latest policy decision.
In corporate news, DuPont was likely to be in focus after the chemicals and seeds producer posted an 8.5% increase in second-quarter profit.
United Technologies, Caterpillar, McDonald’s and Verizon Communications were among the companies due to report on Tuesday.
After the closing bell, investors will eye third-quarter results from technology giant Apple, with analysts expecting earnings of $1.39 per share, down from $1.85 the year before. Meanwhile, revenue has been pencilled in at $42.1bn versus $49.6bn a year earlier.
Still to come on the macroeconomic calendar, S&P/Case-Shiller house prices are at 1400 BST, while Markit’s services purchasing managers’ index is at 1445 BST. US consumer confidence is at 1500 BST, along with new home sales.