US pre-open: Stocks seen higher as North Korea extends olive branch to US
US futures pointed to a positive open on Wall Street on Friday ahead of the long Memorial Day weekend, as investors welcomed North Korea's conciliatory response to President Trump's decision to cancel his planned summit with Kim Jong-Un.
At 1140 BST, Dow Jones Industrial Average, and S&P 500 futures were up 0.3%, while Nasdaq futures were 0.4% firmer.
The mood was a bit brighter as North Korea extended an olive branch to the US after Trump said he had cancelled his meeting with North Korean leader Kim Jong Un in Singapore next month, blaming "open hostility".
However, North Korea’s measured response seems to have assuaged investors following a wobble in the previous session, as an official for the country said it is still willing to meet with the US to "resolve issues any time and in any format".
"It’s remarkable that just hours after President Donald Trump suddenly axed his highly anticipated June summit with Kim Jong-Un in Singapore, North Korea unexpectedly offered an olive branch," said Lukman Otunuga, research analyst at FXTM.
"North Korea has stated that they remain open-minded in giving 'time and opportunity' to the United States and are willing to meet Trump 'at any time in any way'. With the nation also calling the planned summit “desperately necessary” to mend the US - North Korea relationship, the doors could still be open for a summit to take place. Markets will be paying very close attention to how the Trump administration responds to North Korea’s conciliatory stance. Any further signs of de-escalating tensions between the US and North Korea could revive risk sentiment."
On the data front, durable goods orders are at 1330 BST while the Michigan consumer sentiment index is at 1500 BST. Market participants will also eye speeches by Federal Reserve chairman Jerome Powell and other central bank officials later in the day.
In corporate news, Apple shares could be active after Samsung was ordered by a federal jury to pay the company $539m for infringing patents related to phone designs.
Elsewhere, Foot Locker was due to report quarterly earnings before the opening bell.