US pre-open: Stocks seen touch higher ahead of data slew
US stocks looked set for small gains at the open on Thursday as investors shrugged off the trade conflict between the US and China- for now - and looked ahead to a slew of data releases.
At 1220 BST, Dow Jones Industrial Average and Nasdaq futures were up 0.2%, while S&P 500 futures were 0.1% higher.
Oanda analyst Craig Erlam said: "Investors are continuing to monitor the main political stories, which have been an important driver of risk appetite for much of the year, but the latest tariffs didn’t catch anyone off guard and so the impact has been marginal. Of far more interest to investors is what comes next with Trump having threatened to begin 'phase three' if China responded with counter-tariffs, which they have.
"The speed and aggression with which Trump responds will be interesting now, especially given China’s apparent willingness to forge closer relationships elsewhere as ties with the US become increasingly strained. The mid-terms in November may well be a defining moment for these negotiations as a big defeat for Republicans could force a change of strategy. I think Trump will want to avoid 'phase three' if possible due to the impact on the consumer but he’s backed himself into a corner now, his response will be very interesting."
In corporate news, Darden Restaurants looked poised for healthy gains after the Olive Garden parent's first-quarter earnings released before the bell came in better than expected.
Software company Red Hat was sharply lower in pre-market trade after it posted lower-than-expected second-quarter revenue late on Thursday.
Meanwhile, recreational vehicle maker Thor Industries tumbled 10% in pre-market trade after the release of its quarterly earnings.
Comcast, 21st Century Fox and Walt Disney were all likely to be in focus after the UK's takeover panel said it would begin an auction process for London-listed broadcaster Sky this weekend.
Facebook and Twitter shares could be active after the EU said the companies could face sanctions if they don't comply with European consumer rules by the end of the year.
On the macroeconomic calendar, initial jobless claims are at 1330 BST, along with the Philadelphia Fed manufacturing survey, while existing home sales are at 1500 BST. Jobless claims are expected to have ticked up to 210,000 from 204,000 while the Philadelphia Fed manufacturing index is forecast to have increased to 17.0 in September from 11.9 in August.