US markets look set to open lower ahead of the release this afternoon of the minutes from the meeting of the Federal Open Market Committee.
As per usual, investors will be looking for clues in the minutes about the timing of the anticipated hike in US interest rates.
The minutes should provide insight into whether Federal Reserve chairperson Janet Yellen’s view that a rate rise should come this year is shared by other policy makers, many of whom have been sitting on the fence.
“If the minutes show the latter as being true, a September rate hike would appear unlikely as the data since the end of July hasn’t been great and the recent Chinese Yuan devaluation has created further uncertainties for the Fed,” notes Craig Erlam, senior market analyst at forex trading web site OANDA.
Spread betting quotes point to the Dow Jones Industrial Average tumbling around 75 points at the outset from last night’s close of 17,511.
The broader-based S&P 500 is seen opening six points lower at around 2,091, while the Nasdaq 100 is tipped to start eight points in the hole at around 4,534.
Home improvements chain Lowe’s Cos (NYSE:LOW) was one of the high profile laggards in pre-market trading, shedding almost 4%, as its earnings came in short of expectations, though sales growth surprised to the upside.
Elsewhere in the retail sector, office equipment and consumables supplier Staples (NASDAQ:SPLS) also came up shy of market forecasts with its second quarter earnings.
Second quarter sales were down 5% on a year earlier, but were up an underlying 1% once the impact of store closures was removed.
Another retailer, target (NYSE:TGT) looks set for a happier time when the market opens, after it raised its earnings outlook for the year on the back of better-than-expected second quarter profits.
The company now expects earnings per share (EPS) for the year to be in the range of US$4.60 to US$4.75, 10 cents higher at both ends than the previously indicated range.