US Stock Futures Little Changed in Wait for Friday's Yellen Speech

New York (Aug 24)  Stock futures remained close to the flatline on Wednesday as investors awaited a critical speech from Federal Reserve Chair Janet Yellen at the end of the week.

S&P 500 futures were just 0.1% higher, Dow Jones Industrial Average futures added 0.05%, and Nasdaq futures rose 0.05%.

Wall Street has seen jittery trading so far this week as investors opt to sit on the sidelines until the kickoff to the Fed's annual Monetary Policy Symposium in Jackson Hole, Wyo., on Thursday.

"One issue that is likely to garner considerable attention during the symposium is the outlook for the neutral fed funds rate," Deutsche Bank analysts wrote in a note. "Having fallen to -- and remaining persistently near -- record low levels, the neutral rate has drawn intensifying scrutiny from key Fed officials. Its outlook has pivotal implications for both the likely future path of the fed funds rate and the way in which monetary policy is conducted in the future."

Yellen will cap off the week with a speech at the summit which will provide important context to the markets' outlook for rates. Yellen's comments will likely remain dovish and conservative, pushing data dependency for any future rate moves.

The chances of a September rate hike currently sit at 18%, according to CME Group fed funds futures. A rate hike in November has better chances at 41%.

In earnings news, Express (EXPR) tanked 20% in premarket trading after missing quarterly estimates and issuing a disappointing outlook. The apparel retailer earned 13 cents a share over the quarter, down from 25 cents a year earlier and below consensus of 17 cents. Same-store sales tumbled 8%, sharper than an expected 4.6% drop. Current-quarter earnings guidance between 9 cents and 15 cents a share fell well below expectations of 32 cents. The company blamed "challenging store traffic" as reason for a poor second quarter.

Source: TheStreet