US pre-open: Stocks seen touch weaker as investors pause for breath
US futures pointed to a flat to slightly lower open on Wall Street, with investors set to pause for breath after indices closed at record highs on Wednesday for the fifth session in a row.
At 1110 GMT, Dow Jones Industrial Average and S&P 500 futures were down 0.1% and 0.2%, respectively, while Nasdaq futures were flat.
The main indices gained again on Wednesday after Donald Trump said “massive” tax plans would be announced in the “not-too-distant future”. In a meeting with retail executives, the US President said his plans would lower rates "substantially" for both individuals and businesses.
Meanwhile, oil prices were steady, with West Texas Intermediate and Brent crude up 0.1% to $53.17 a barrel and $55.76, respectively.
Oanda’s Craig Erlam said: “Five consecutive sessions of new record highs would appear to be the trigger for some profit taking in US equity markets, with all three major indices currently on course to open in the red on Thursday.
“There’s been a strong focus on the US over the last couple of days and for a change, the attention has been more so on the central bank and interest rates as opposed to its extremely active and often controversial new President. Fed Chair Janet Yellen concluded her two days of testifying before Congress with an appearance before the House Financial Services Committee on Wednesday and while much of the rhetoric was broadly similar to that of the day before and more time was spent discussing other matters such as regulation, it’s clear that her comments struck a chord with investors.”
Erlam pointed out that rate hike expectations have become much more hawkish over the last couple of days, with expectations of a March hike rising to 31% on Wednesday from around 13%, and chances of a hike in May now above 50%.
On the corporate front, Cisco Systems was higher in pre-market trade after it reported better-than-expected results late on Wednesday.
Media company CBS Corp and food giant Kraft Heinz were also likely also likely to be in focus after beating analysts’ expectations.
Ahead of the open, earnings are due from Charter Communications, Wendy’s, MGM Resorts International and Dean Foods.
On the data front, all eyes will be on housing starts, jobless claims and the Philadelphia Fed manufacturing survey at 1330 GMT.