US pre-open: Stocks seen muted as investors eye Yellen
US futures suggested a muted open on Wall Street on Tuesday as investors look ahead to speeches by Fed Chair Yellen and some key inflation and retail sales figures later in the week.
At 1100 BST, Dow Jones Industrial Average and S&P 500 futures were flat while Nasdaq futures were down 0.1%. Meanwhile, the dollar was up 0.1% against the euro at 0.8777, 0.3% firmer versus the yen at 114.33 and 0.2% lower against sterling at 0.775.
James Hughes, chief market analyst at GKFX, said: "Yet again the calendar is looking a little quiet with a lack of macroeconomic data due for release, so with that in mind it is a case of early focus shifting to Janet Yellen’s testimony on Wednesday and Thursday. Movement in markets is very much focussed on the Fed, with the US dollar underpinned by policy expectations. So with this in mind we will be waiting to see if Janet Yellen will stick to her hawkish tones of recent weeks and continue with plans to start to unravel the Fed’s balance sheet.
"More hawkish tones from Yellen will give the US dollar more in the way of upside and support recent moves we have seen in some of the major currency pairs over recent days. We must also take into account the strong nom-farm payroll reading on Friday, a number that is becoming less important, and in the Fed’s current cycle, less likely to change any of their policy decisions if reported weaker."
In corporate news, PepsiCo was among the companies slated to report earnings before the opening bell.
Elsewhere, Amazon.com could be in focus as its Prime Day promotion gets underway.
On the data front, JOLTS job openings are at 1500 BST, along with wholesale inventories. Thursday sees the release of the producer price index for June while on Friday, retail sales and the consumer price index are due.
Investors will also eye a speech by Federal Reserve governor Lael Brainard at a New York Fed conference at 1730 BST, while Minneapolis Fed President Neel Kashkari will take part in a Q&A at the Minnesota Women's Economic Roundtable later in the day.