US pre-open: Stocks set for muted start as investors pause for breath
US futures pointed to a muted open on Wall Street as investors paused for breath following the recent rally.
At 1105 GMT, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all down 0.1%.
Remo Fritschi, institutional sales manager at ADS Securities London, said: “There may still be vast swathes of optimism over what Donald Trump’s presidency will be able to bring for US businesses, but futures markets are suggesting that Wall Street will be pausing for breath when trading gets underway in a few hours’ time.
“We also have PPI data due for release before the opening bell and anything that looks toppy here will refocus minds on the fact that not only is a rate hike imminent, but also that more action may be needed early in the new year to quell some of the market’s current enthusiasm.”
Meanwhile, oil prices retreated. West Texas Intermediate was down 0.9% to $45.42 a barrel and Brent crude was 0.6% weaker at $46.66. The head of the International Energy Agency said on Wednesday that global oil demand won’t peak before 2040 despite promises made at the climate change summit in Paris last year to cap greenhouse gas emissions.
On the corporate front, retailers Lowe’s Cos and Target were slated to report earnings before the opening bell.
Elsewhere, LinkedIn was in the black in pre-market trade following a report that Microsoft has offered concessions to EU regulators to get the OK for its $26bn bid for the social network.
Market participants will also be digesting news that the owner of photo-sharing app Snapchat is planning a flotation that could value it at $25bn.
On the macroeconomic calendar, the US producer price index is at 1330 GMT while industrial output is at 1415 GMT.
Investors will also eye a speech by Federal Reserve Bank of St Louis President James Bullard in London on monetary policy after quantitative easing, and public appearances by Philadelphia Fed President Patrick Harker and Minneapolis Fed President Neel Kashkari, both non-voting members.