US pre-open: Stocks seen touch lower as focus shifts to non-farm payrolls this week
US futures pointed to a marginally weaker open on Wall Street as investors looked ahead to the all-important non-farm payrolls report at the end of the week.
At 1140 BST, Dow Jones Industrial Average futures were flat, while S&P 500 and Nasdaq futures were off 0.1% and 0.3%, respectively.
At the same time, oil prices were firmer, with West Texas Intermediate up 0.6% at $47.26 and Brent crude up 0.4% at $49.46.
Joshua Mahony, market analyst at IG, said: “Much like last week, which saw traders spend their time anticipating Friday’s speech from Yellen, this week will also see a crescendo of anticipation into the August payrolls figure, which according to Stanley Fischer represents a deal breaker regarding whether the Fed will indeed raise rates in 2016.
“Following relatively robust numbers in the past two months, another 200K-plus figure could provide the spark needed for the committee to act this year, with markets currently pricing in a 61.4% chance. Given the threat associated with the US election in November, the likelihood is that December provides the best chance for action from the Fed.”
In her speech at the Jackson Hole symposium last week, Fed Chair Janet Yellen noted that the US economy is improving and suggested the case for a move on rates had strengthened in recent months.
In corporate news, Apple was under the cosh in pre-market trade after the European Commission ruled that Ireland should recover up to €13bn from the technology giant in back taxes.
Hershey shares tumbled after Mondelez International said late on Monday it has ended its bid to buy the chocolate maker.
On the upside, United Continental Holdings was in the black in pre-market trade after it said late on Monday that it has named Scott Kirby as president.
On the macroeconomic calendar, US consumer confidence is at 1500 BST.