US pre-open: Stocks seen higher amid tax reform hopes

US futures pointed to a firmer open on Wall Street on Monday as investors grew increasingly hopeful that the US tax reform bill will be passed this week.

At 1220 GMT, Dow Jones Industrial Average and Nasdaq futures were up 0.6%, while S&P 500 futures were 0.4% higher.

Konstantinos Anthis at ADS Securities said: "When news that Republican Senators Rubio and Corker decided to support the proposed legislation hit the wires, dollar bulls rejoiced and drove the currency higher. Now the question is whether this bullish momentum can extend until the end of the year and our view is that the dollar has limited scope for more gains over the next couple of weeks.

"Granted, the tax reform bill seems certain to be passed into law but there are conflicting views on whether it will actually stimulate growth in the economy. At the same time, investors know that it will be some time until they get fresh guidance from the Fed given Yellen's departure. As such, we believe that market participants will likely opt for a cautious approach until early 2018 as there is a lack of any other significant fundamental drivers to spur the currency. In terms of fresh data this week, there's nothing on the calendar until Thursday's GDP report so the dollar will take its cue from the developments in Congress regarding the voting of the tax legislation."

In corporate news, shares of railroad company CSX were weaker in pre-market trade following the death of chief executive officer E. Hunter Harrison on Saturday.

Hershey was likely to be in focus after agreeing to buy to buy Amplify Snack Brands for $12.00 per share.

Akamai Technologies rose sharply in pre-market trade after activist hedge fund Elliott Management said on Friday that it had a 6.5% stake in the internet technology group.

Elsewhere, software company Oracle was in the black after announcing a $1.2bn deal to buy Australian project management software provider Aconex.

On the data front, the NAHB housing market index is at 1500 GMT.