US pre-open: Stocks seen muted ahead of Fedspeak
US futures pointed to a muted open on Thursday as investors eye a slew of speeches by Federal Reserve officials.
At 1130 BST, Dow Jones Industrial Average and S&P 500 futures were flat, while Nasdaq futures were up 0.1%. On Wednesday, all three of the main indices hit record closing highs for the third straight session following encouraging services sector data.
Fedspeak will be the main focus, with Federal Reserve governor Jerome Powell due to speak in New York at 1410 BST, while San Francisco Fed President John Williams will make a speech on community banking at the St Louis Fed conference at 1415 BST. In addition, Philadelphia Fed President Patrick Harker will speak in Texas at 1530 BST and Kansas City Fed President Esther George will make a speech at 2030 BST.
Chris Beauchamp, chief market analyst at IG, said: "The rise in the prices indices in this week’s ISM readings provide the rationale for further rate increases by the Fed. This may well be covered in today’s speeches by FOMC members Powell and Harker, along with some detail on the balance sheet unwind.
"With the dollar index at near two-month highs, it looks like the market is prepared to believe that the committee remains committed to higher rates, even if they think current forecasts are a bit on the hawkish side. Ahead of the open, we expect the Dow to start at 22,658, down three points from last night’s close."
On the macroeconomic calendar, trade balance figures and initial jobless claims are at 1330 BST, while factory orders are at 1500 BST.
In corporate news, Constellation Brands was set to report earnings before the opening bell, while Costco was slated to report after the close.
SeaWorld Entertainment rallied in pre-market trade following reports that Legoland owner Merlin Entertainments is looking to buy part of the water park operator.