US stock futures inch higher ahead of key Yellen speech

Washington (July 15)  US stocks were on track for a fifth straight day of gains on Wednesday, as stock futures inched higher ahead of testimony from Federal Reserve Chairwoman Janet Yellen that could provide fresh clues on the timing of the first interest-rate hike.

Futures for the Dow Jones Industrial Average YMU5, +0.06%  nudged higher by 15 points, or 0.1%, to 17,976, while those for the S&P 500 index ESU5, +0.09%  gained 2.15 points, or 0.1%, to 2,104.25. Futures for the Nasdaq 100 index NQU5, +0.20%  added 9.75 points, or 0.2%, to 4,527.25.

“Janet Yellen’s appearance before Congress for her semi-annual monetary policy report is pivotal for markets,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor, in a note.

“Greece had been a key obstacle which might have prevented the Fed from actively considering imminent U.S. interest-rate rises. With this problem now close to resolution, the path has been cleared for the Federal Reserve to raise rates sooner,” she added.

Read: There’s limited scope for Yellen to move markets with Hill appearance

Yellen will give her semi-annual speech about the central bank’s economic outlook to the House Financial Services Committee at 10 a.m. Eastern. The testimony will be released publicly at 8:30 a.m. She’ll address the Senate Banking Committee on Thursday.

A weak reading on June retail sales on Tuesday fueled speculation the Fed may delay its first rate hike, helping to send the main stock averages higher for a fourth straight day.

Wednesday’s key economic news: Aside from Yellen’s appearance before the House committee, investors face a packed data calendar on Wednesday.

At 8:30 a.m., the Empire State manufacturing index for July is due, and is forecast to climb to 4 from a negative reading of 2 in June. Out at the same time is the June reading on producer prices. Economists polled by MarketWatch expect a print of 0.2%, down from 0.5% in May, while core PPI is predicted to stay at 0.1%.

Industrial production for last month comes out a 9:15 a.m. and should show a 0.1% rise, according to estimates, compared with a 0.2% fall in May. A report on capacity utilization is also due at 9:15 a.m.

The Fed’s Beige Book—a survey of economic conditions that a month ago showed muted wage gains—is expected at 2 p.m. Eastern.

Source: MarketWatch