US pre-open: Stocks seen muted but Dow creeping towards 20,000
US futures pointed to a muted open on Wall Street, with the Dow edging closer to the key 20,000 mark following a strong close last week.
On Friday the S&P 500 and the Nasdaq set new record closing highs, while the Dow was just shy of the 20,000 mark following an encouraging non-farm payrolls report.
At 1205 GMT, Dow Jones Industrial Average and S&P 500 futures were down 0.1%, while Nasdaq futures were flat.
Meanwhile, oil prices retreated after an update from Baker Hughes on Friday revealed the number of rigs drilling for oil in the US was up four in the week to 30 December. West Texas Intermediate was down 1.8% at $53.01 and Brent crude was off 1.9% to $56.06.
James Hughes, chief market analyst at GKFX, said: “Global markets could well be focussed on Donald Trump’s speech on Wednesday as the economic calendar looks a little light of any key data until the end of this week. The president elect’s press conference this week could be hit or miss with Trump very often grabbing headlines and causing controversy during his rallies and with comments on Twitter. This would usually be a non-event for the markets, as political wranglings and press conferences are often ignored by the major markets. However a Donald Trump press conference is not you normal political press conference.
“For today’s session we could it will be the rebound in the US dollar and the constant march towards 20,000 for the Dow Jones that will be in focus. Friday saw the Dow get its closest yet to breaking the psychological resistance level stopping just two points shy after hitting a high of 19,998. European equity markets have opened slightly weaker this morning after Asian markets unwound some of the gains overnight, but with Dow futures only moderately lower there is still potential for the market to turnaround later this afternoon and have another run at the number.”
In corporate news, McDonald’s was likely to be in focus following news that it has inked a deal to sell a controlling stake in its China unit to an investor group led by China’s Citic.
Merrimack Pharmaceuticals surged in pre-market trade after the company said on Sunday that it will sell its oncology assets to France’s Ipsen in a deal worth up to $1.025bn.
General Motors nudged a touch lower in pre-market trade after chief executive Mary Barra told reporters Sunday that the company won't relocate small car production to Mexico.
Later in the day, Boston Fed President Eric Rosengren will speak in Hartford, Connecticut, while Atlanta Fed President Dennis Lockhart will speak in Atlanta.