US pre-open: Indices set for mixed start as energy futures tumble after OPEC decision
Heavy falls from energy majors Exxon and Chevron were set to lead to a subdued start on Wall Street on Friday, as US markets re-open following the Thanksgiving break.
US indices were playing catch-up with European markets after the New York Stock Exchange was closed on Thursday, with oil stocks reacting to a plunge in the price of crude as the Organization of Petroleum Exporting Countries (OPEC) decided not to cut output.
Futures on the Dow Jones Industrial Average were flat by 08:36 in New York, as heavyweights Exxon and Chevron limited gains, while S&P 500 futures 0.2% and the Nasdaq rose 0.3% in pre-market trade.
West Texas Intermediate crude fell 6.4% on Wednesday's close to $68.95, its first dip below $70 since mid-2010, on concerns about a global supply glut. There was no trading floor for US oil on Thursday.
US markets will close early on Friday at around 13:00.
"Although not a bank holiday today, US markets will be running reduced trading hours and equity volumes historically struggle to raise too much of an interest," said analyst Alastair McCaig from IG.
Exxon, Chevron, Anadarko Petroleum, Conocophillips, Marathon Oil, Murphy Oil, Hess Corp and Devon Energy were just some of the oil companies trading with heavy losses in pre-market trade following the OPEC decision.
In contrast, the prospect of lower fuel costs was lifting futures of travel stocks ahead of the opening bell, with Delta Air Lines, Southwest Airlines and cruise operator Carnival making gains.
Retailers will be in focus on Friday as shops open their doors for the traditional Black Friday sales, one of the most important shopping days for many chains.
Wal-Mart said that online sales on Thanksgiving rose to their second-highest level in history. Cyber Monday 2013 was still in the lead as the most successful day for the retail giant.