US pre-open: Flat start seen ahead of raft of data amid record inflow into stocks
Updated : 12:01
Stocks are being called to start the session on a mixed to flat note ahead of a full slate of economic indicators due out before the opening bell and ahead of the quarterly expiry of derivatives on equities and indices later in the day.
To take note of, overnight strategists at Bank of America-Merrill Lynch pointed out to clients the record $43.3bn of inflows into equities seen over the week ending 14 March.
Their take on the latest weekly flow data was that clients were increasingly positioned for higher earnings per share, short rates and bond yields, albeit alongside a lower US dollar.
However, "treasuries and bunds hinting at 'growth scare' makes stocks vulnerable; LIBOR leading to tighter financial conditions, higher US dollar required to ding tech and Emerging Markets," they said.
Even so, their Bull&Bear indicator slipped from a reaading of 6.8 to 6.5, which meant it was no longer in 'sell' territory.
Against that backdrop, as of 1135 GMT futures on the Dow Jones Industrials were pointing to a drop of 22.0 points to 24,902.0, alongside a 2.25 point dip on the Nasdaq-100 to 7,608.25, although the S&P 500 was seen starting flat at 2,755.50.
In the background, markets were also expectant ahead of the US Federal Reserve's next policy meeting on 20-21 March.
On the economic calendar for the end of the week, a reading on US housing starts and permits was scheduled for 1230 GMT, followed close behind by readings on industrial production at 1315 GMT, the results of the JOLTS labour market survey for January at 1400 GMT and the preliminary reading on the University of Michigan's consumer confidence gauge for March, also at 1400 GMT.
Meanwhile, in corporate news, Johnson&Johnson announced that Platinum Equity had offered to purchase its Life Scan unit for $2.1bn.
Jewellery retailer Tiffany&Co. was also expected to do well after posting fourth quarter adjusted earnings per share of $1.67 (consensus: $1.63) om the back of a stronger-than-expected 1.% rise in like-for-like sales.