US pre-open: Stocks seen flat amid Russia developments; Abercrombie rallies
US futures pointed to a muted open on Wall Street on Friday as investors continued to mull developments regarding Russia’s involvement in the US presidential election.
At 1300 GMT, Dow Jones Industrial Average and S&P 500 futures were flat while Nasdaq futures were off 0.1%.
Oanda analyst Craig Erlam said: "Strong gains yesterday left US equity markets back within touching distance of record highs and while that will have given some investors’ confidence that the recent stumble has passed, an inability to hold onto these today still leaves markets vulnerable to a broader pull-back. A failure to make a new high is typically another warning that the trend is weakening, especially coming after a month in which it has fallen into a sideways trend, rather than continuing its gradual ascent.
“Slow progress on tax reform in the US and reports that Robert Mueller has issued a subpoena to the Trump campaign in relation to the Russia probe are two other things that are being blamed for the more risk averse tone but I think in reality, neither of these would have had such an impact a month ago and it’s probably more a reflection of a less bullish investor.”
Erlam added that from a technical perspective, 23,250 now looks like a very important level for the Dow and a break below here could trigger a bigger correction in the index.
“Given the steady gains we’ve seen over the last few months, even move back towards 23,000 would only represent a small correction in the most recent rally and would be healthy for markets.”
On the data front, Abercrombie & Fitch looked set for an up day after the retailer posted better-than-expected third-quarter earnings and revenue.
Electric car maker Tesla was higher in pre-market trade after it launched a semi-autonomous electric big rig late on Thursday, which it promised will deliver big cost efficiencies.
21st Century Fox was also in the black following reports that Comcast and Verizon Communications are looking to bid for some of its assets.
Hibbett Sports gained ground after its third-quarter earnings beat expectations and it upped its full-year guidance, while Foot Locker surged as its third-quarter sales and profit dropped less than expected.
On the macroeconomic calendar, building permits and housing starts are at 1330 GMT.