US STOCKS-Wall St set to open higher ahead of Yellen’s testimony

* Janet Yellen to testify at 10 ET

* Fed to release Beige Book at 2 p.m. ET

* Futures up: Dow 27 pts, S&P 3.25 pts, Nasdaq 13.5 pts
(Adds details, quote)

By Sweta Singh

July 12 (Reuters) – Wall Street looked set to open higher on
Wednesday ahead of Federal Reserve Chair Janet Yellen’s
semi-annual monetary policy testimony before Congress.

The Fed Chair is expected to tell the House Financial
Services Committee at 1000 ET that the central bank remains on a
hawkish course of steadily rising rates.

Investors will be closely watching the testimony for any
signals on how the bank is viewing a retreat in inflation and
muted wage growth.

The U.S. central bank will also issue its Beige Book at 2
p.m. ET (1800 GMT), a compendium of anecdotes on the health of
the economy. This will likely provide further evidence on the
strength of the economy and give the Fed impetus to raise
interest rates.

The Fed’s next policy meeting is on July 25-26.

“We look for the markets to be choppy as the latest
political saga overhangs and the forecast of the economic
outlook remains favorable despite of a tighter monetary policy
ahead,” said Peter Cardillo, chief market economist at First
Standard Financial.

U.S. stocks closed flat on Tuesday after clawing back from a
fall as emails suggested Trump Jr. welcomed Russian help against
Clinton in the 2016 presidential campaign.

The dollar on Wednesday failed to recover from the damage
suffered from Trump’s alleged links with Russia and held close
to its lowest in more than a year against the euro.

Investors will also be keeping an eye on second-quarter
earnings reports on Friday from big U.S. banks including
JPMorgan Chase, Wells Fargo and Citigroup.

Dow e-minis were up 27 points, or 0.13 percent, with
15,605 contracts changing hands.

S&P 500 e-minis were up 3.25 points, or 0.13 percent,
with 96,618 contracts traded. Nasdaq 100 e-minis were up
13.5 points, or 0.24 percent, on volume of 22,073 contracts.

U.S-listed shares of Ceragon Networks were up 4.7
pct at $2.65 premarket after the company received orders from a
service provider in India.​

Ocular Therapeutix shares were down 32.2 pct at
$5.15 after U.S. FDA rejected the company’s post operative eye
pain drug.
(Reporting by Sweta Singh in Bengaluru; Editing by Arun Koyyur)

Leave a Reply

Your email address will not be published.