US pre-open: Futures higher as Powell returns to Capitol Hill

(Sharecast News) - Wall Street futures were in the green ahead of the bell on Thursday as all eyes remained firmly on Federal Reserve chairman Jerome Powell. As of 1245 GMT, Dow Jones futures were up 0.12%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.26% and 0.45% firmer, respectively.

The Dow closed 75.86 points higher on Wednesday as major indices managed to reclaim some of their weekly losses.

On Wednesday, Powell told the House Financial Services Committee that the central bank's policy rate was at its "peak for this tightening cycle", but also said the Fed was not ready to begin reducing rates just yet. Powell will now appear before the Senate Banking Committee at 1500 GMT.

Trade Nation's David Morrison said: "Following a disappointing start to the week, US stock indices recovered their poise yesterday and posted gains right across the board. Yet the Dow, S&P and NASDAQ remain below recent all-time highs as some of the froth came off what appear to be very bubbly markets. Could the pullback seen over Monday and Tuesday be enough to reset markets and give them a fresh base from which they can push higher, or can we expect more selling? It's hard to know.

"As far as the rally since the end of October is concerned, it has only taken the odd negative session plus some sideways consolidation to prepare the major indices for a further round of buying. On that basis, it appears the indices have done enough to set up a move to fresh highs. But looking at the MACDs for the three major indices, there's some notable negative divergence. While prices have trended upwards, with a succession of higher highs and higher lows, the related momentum indicators have been dipping lower for some time now. That doesn't mean that a crash is imminent, or even that the highs for this cycle are in. But it does suggest that investors should exercise some caution now."

On the macro front, weekly jobless claims numbers will be published at 1500 GMT, as will January's goods trade balance and consumer credit figures.

In the corporate space, Victoria's Secret traded sharply lower on the back of mixed quarterly results and disappointing guidance, while Novo Nordisk traded higher following positive results from a trial on its obesity treatment.

Reporting by Iain Gilbert at Sharecast.com