US pre-open: Stocks seen slightly higher in thin trade
US futures pointed to small gains at the open on Wall Street, with volumes and news light, although there were a few data points to look forward to.
At 1245 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.2% and 0.1%, respectively, while Nasdaq futures were 0.3% firmer.
Oanda analyst Craig Erlam said: “US equity markets are poised to open a little higher on Thursday after making marginal gains a day earlier in light trade.
“It’s likely to be another relatively quiet day, as is often the case during the holiday period, and a lack of economic events on the calendar won’t help matters. There are a few pieces of data scheduled for release, although its mostly low and medium tier data, including jobless claims, Chicago PMI and trade balance figures. We’ll also get crude inventories data, as oil continues to trade near its highs with WTI pushing $60.”
Erlam noted that the US dollar is trading lower for a second day as it continues to struggle after yields on Treasuries slipped on Wednesday.
“The flattening of the yield curve has triggered concerns that investors are possibly pricing in a slowing of the economy or even a recession and while this has historically happened on such expectations, I’m not convinced this is the case this time.
“Given the current environment, it’s possible that this is more a reflection of longer term interest rates and the low inflation environment than the economic prospects. Still, if yields on long term US debt don’t rise or even fall as the Fed raises interest rates, it could fuel fears of an impending recession.”
Unsurprisingly given the time of year, corporate news was thin on the ground.
Shares in trucking company JB Hunt were weaker in pre-market trade after it issued fourth-quarter guidance that missed analysts’ expectations.
On the macroeconomic calendar, initial jobless claims, wholesale inventories and the goods trade balance are at 1330 GMT, while the Chicago purchasing managers’ index is at 1445 GMT.