US preopen: Stocks seen muted as investors await Yellen testimony
US futures pointed to a muted open on Wall Street as investors awaited a speech by Federal Reserve Chair Janet Yellen.
At 1135 GMT, Dow Jones Industrial Average and S&P 500 futures were down 0.1%, while Nasdaq futures were flat.
Meanwhile, oil prices were firmer, with West Texas Intermediate up 0.7% to $53.28 a barrel and Brent crude up 0.8% to $56.04.
Yellen is due to testify to the Senate Banking Committee on Tuesday, with an appearance before the House Financial Services panel scheduled for Wednesday.
Chris Beauchamp, chief market analyst at IG said: “Fresh record highs in the US yesterday could be the high water mark for the rally if Janet Yellen lets slip anything unnerving in her testimony to the Senate Banking Committee today.
“The breakout in bank stocks yesterday was down to continued expectations of a looser regulatory regime but if Yellen abandons the script of ‘three hikes in 2017’ some of these gains could be swiftly eroded.”
Investors will also continue to keep an eye out for any Trump-related headlines, after national security adviser Mike Flynn resigned late Monday over allegations about his contacts with Russian officials.
On the corporate front, Molson Coors Brewing, T-Mobile US, and Dr Pepper Snapple are slated to report earnings ahead of the open.
After the close, numbers are due from American International Group and Fossil.
Meanwhile, US-listed shares of Credit Suisse were likely to be in focus after it reported a bigger-than-expected loss for the fourth quarter following its settlement with US authorities, and announced plans to cut 5,500 jobs.
Technology giant Apple was also likely to be active after the shares hit record highs on Monday for the first time in two years.
Amazon.com edged higher in pre-market trade after it announced a push into videoconferencing called Chime, which will take on similar services offered by Microsoft and Cisco Systems.
Communications and video-chip maker GigPeak surged in pre-market trade after IDT Inc said late on Monday that it will buy the group in an all-cash $250m deal.
The producer price index is at 1330 GMT, while Yellen’s speech is at 1500 GMT.