US pre-open: Stocks seen flat as Goldman, Citi earnings eyed
US futures pointed to a broadly flat open on Wall Street as investors awaited earnings from banking heavyweights Goldman Sachs and Citigroup and a speech by Federal Reserve chair Janet Yellen.
At 1130 GMT, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were up just 0.1%.
Meanwhile, oil prices retreated, with West Texas Intermediate down 1.4% to $51.75 a barrel and Brent crude 1.2% lower at $54.79.
IG’s Joshua Mahony said: “US banks suffered a difficult session yesterday, but the focus on the sector remains intense today as Goldman Sachs and Citigroup both unveil their earnings. The sector drove the rally in the wake of the election, but perhaps now it is signalling that a turn is due.”
In currency markets, the dollar was bouncing back from losses in the previous session, when President-elect Donald Trump suggested in an interview with The Wall Street Journal that he favoured a weaker dollar, commenting that the greenback was too strong against the yuan. The dollar fell to a seven-week low against the yen on the back of Trump’s comments.
The US currency was up 0.8% versus the pound, 0.3% against the euro and 0.6% versus the yen.
In corporate news, results are due from Goldman Sachs and Citi ahead of the bell, and Netflix after the close.
Uranium miner Cameco Corp was sharply lower in pre-market trade after saying late on Tuesday that it will cut 10% of its workforce and warning on earnings.
Chip maker Qualcomm edged higher in pre-market trade as it emerged the Federal trade Commission filed a monopoly complaint against the company.
Apollo Global Management could be in focus on reports it is preparing Chuck E. Cheese for an initial public offering.
On the data front, investors will turn their attention to the consumer price index at 1330 GMT and the NAHB housing market index at 1500 GMT. Elsewhere, Yellen is due to make a speech on the goals of monetary policy at 2000 GMT.