US pre-open: Stocks to nudge higher ahead of Powell speech

US futures pointed to a marginally higher open on Wall Street on Tuesday following record high closes in the previous session, with little on tap other than a speech by Jerome Powell.

At 1140 BST, Dow Jones Industrial Average and Nasdaq futures were up 0.1%, while S&P 500 futures were flat. On Monday, all three indices notched record high closes following the release of encouraging manufacturing data.

According to a survey by IHS Markit, manufacturing activity in the US grew a little more than initially estimated in September. IHS Markit's final manufacturing purchasing managers' index edged up to 53.1 from a flash estimate of 53.0 and a reading of 52.8 in August. Meanwhile, data from the Institute for Supply Management showed growth in the US manufacturing sector unexpectedly improved in September.

Oanda analyst Craig Erlam said: "With the bulk of this week’s US data being released over the next three days, it’s going to be one of the week’s quieter sessions on Wednesday. We will hear from potential Fed Chair-to-be Jerome Powell, one of four people to have interviewed to lead the central bank when Janet Yellen’s term expires in February.

"Powell is due to speak on regulatory reform before a Reuters conversation on US Financial Regulation but as always, officials can stray off topic onto monetary policy, especially when prompted during Q&A sessions."

Powell's speech in Washington is due at 1330 BST.

On the corporate front, electric car maker Tesla was lower in pre-market trade as it emerged late on Monday that third-quarter production for the Model 3 sedan was lower than expected due to manufacturing bottlenecks.

Meanwhile, MGM Resorts - the owner of the Mandalay Bay property in Las Vegas where the mass shooting took place - was likely to be in focus again.

Housebuilder Lennar Corp and Paychex were among the companies slated to report earnings before the open.