Investing.com –Wall Street futures pointed to a higher open in thin trade on Tuesday, while investors looked ahead to a couple of economic reports due out later in the session and readied to digest a few corporate earnings releases.
The blue-chip Dow futures gained 37 points, or 0.20%, by 10:58AM GMT, or 6:58AM ET, the S&P 500 futures rose 5 points, or 0.21%, while the tech-heavy Nasdaq 100 futures traded up 11 points, or 0.24%.
Trade continued to be light with NYSE volume near the year’s low with experts pointing to summer vacation as well as caution ahead of Federal Reserve (Fed) chair Janet Yellen’s speech at Jackson Hole on Friday as the main culprits for the lack of movement. The S&P 500 hasn’t closed with a 1% move since July 8.
The dollar was lower against most of the major currencies on Tuesday, including the yen, euro and pound, as markets looked ahead to Yellen’s appearance in the hopes that it could shed light on the timing of a U.S interest rate hike.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, lost 0.17% to 94.36 by 10:58 AM GMT, or 6:58AM ET, pulling back from the prior session's high of 94.94 but still keeping distance from last week's eight-week low of 94.05.
According to Investing.com's Fed Rate Monitor Tool, investors are pricing in an 18% chance of a rate hike by September, up from 12% at the start of last week before several Fed officials declared that an increase was on the table for the next meeting. December odds were at around 50%.
Contrary to the empty economic calendar on Monday, investors could find reasons to trade later in the session on the back of Markit’s preliminary manufacturing PMI for August due Tuesday at 13:45GMT, or 9:45AM ET, followed up by both July new home sales and the Richmond manufacturing index for August out at 14:00GMT, or 10:00AM.
Meanwhile, oil prices were down for the second day in a row on Tuesday, retreating further from the highest levels in nearly two months amid growing concerns that the upcoming meeting among major oil producers may not yield any action to reduce the global glut.
Market participants paid particular attention to a report from Goldman Sachs pointing to the fact that a “production freeze would also likely prove self-defeating if it succeeded in supporting oil prices further, with the U.S. oil rig count up 28% since May” and insisting that “the oil price recovery is tenuous”.
U.S. crude futures fell 0.82% to $47.02 by 11:02AM GMT, or 7:02AM ET, while Brent oil lost 0.85% to $48.73.
Amid a handful of companies reporting earnings, Toll Brothers Inc (NYSE:TOL) reported a 23.5% increase in revenue. Shares of the luxury home builder traded 0.6% higher in pre-market trade.
Best Buy Co Inc (NYSE:BBY) and JM Smucker Company (NYSE:SJM) were among firms scheduled to report before the opening bell, while Intuit (NASDAQ:INTU) would be in the earnings spotlight after the market close.
Elsewhere, European and U.K. stocks were slightly higher in mid-morning trade, boosted by data which showed that the euro zone economy had yet to feel a negative impact from the Brexit vote.
Earlier, Asian shares ended mixed, with traders hesitant to make big bets ahead of Yellen’s speech at Jackson Hole.