Investing.com - Wall Street stock futures point to a flat open with mixed signs as investors remained on hold ahead of Congress’ vote on the healthcare plan in what would be a first test of U.S. President Donald Trump’s capacity to push forward with policy changes, before tackling tax reform, spending and deregulation.
The blue-chip Dow futures was unchanged, by 6:55AM ET (10:55GMT), the S&P 500 futures inched up 2 points, or 0.09%, while the tech-heavy Nasdaq 100 futures edged forward 1 point, or 0.02%.
Repealing and replacing Democratic former President Barack Obama's 2010 Affordable Care Act is a first major test of Trump’s legislative ability and whether he can keep his big promises to business.
According to reports, the White House offered to get rid of a list of “essential health benefits” in a move to garner support from the House's conservative Freedom Caucus that has been opposed to the bill.
The Freedom Cause had said that 25 of its members were against an earlier version of the bill and it was thought that Trump could afford to lose no more than 22 in order for his replacement plan to pass.
Trump was to meet with members of the Freedom Caucus on Thursday at 11:30AM ET, the White House said.
Investors see the Trump administration's struggles to push through the healthcare overhaul as a sign he may also face setbacks delivering on the promises for tax cuts, regulatory reform and infrastructure spending.
Strategists have been cautioning for weeks that markets are pricing in a scenario where nothing goes wrong with Trump's agenda.
In economic data out Thursday, weekly jobless claims will be released at 8:30AM ET (12:30GMT) with February new home sales on the docket for 10:00AM ET (14:00GMT).
Market players will also be on the lookout at 8:45AM (12:45GMT) when Federal Reserve chair Janet Yellen delivers opening remarks to the 2017 Federal Reserve System Community Development Research Conference on the off chance that she may provide insight into the likelihood of higher interest rates in the months ahead.
The U.S. central bank raised interest rates on Wednesday last week, but stuck to its outlook for two more hikes this year, instead of three expected by the market.
Markets don’t currently put the odds for the next rate hike above the 50% threshold until the July meeting, according to Investing.com’s Fed Rate Monitor Tool.
Minneapolis Fed president Neel Kashkari and Dallas Fed chief Rob Kaplan are also on tap Thursday.
Meanwhile, oil prices bounced off a fourth-month low hit in the prior session as market players weighed record-high stockpiles in the U.S. against efforts by major producers to cut output to reduce a global glut ahead of the technical committee meeting this weekend that will analyze compliance on agreed production cuts and was expected to discuss the possibility of an extension of the deal.
U.S. crude futures gained 0.62% to $48.34 by 6:56AM ET (10:56GMT), while Brent oil rose 0.61% to $50.94.