Before the bell: What you need to know before the US market open
Japan avoids a recession and the oil price could be about to climb over $50 per barrel for the first time this year. Here's what you need to know before the US market open at 2:30pm London time.
Markets look flat before the open. S&P futures are dead-centre, not even a point off. The Nasdaq is down by 0.01 per cent, while the Dow is 0.03 per cent lower.
The US 10-year yield is up one basis point at 1.78 per cent.
Asia delivered some good news this morning…
Japan's economy expanded 1.7 per cent in the first quarter of the year, rebounding strongly from a contraction of 1.7 per cent in the last three months of 2015. The Japanese Nikkei closed flat however.
In oil…
Oil prices continue to hover around a seven month high. US benchmark West Texas Intermediate hit $48.58 per barrel, its highest since October, however both WTI and Brent crude have dipped a little since then.
Read more: Shell latest oil major to be embroiled in row over exec pay
Traders are expecting oil to breach $50 per barrel any day now as production problems in Canada, Venezuela and Nigeria continue to boost prices.
Stocks to watch
Office supplier Staples is doing well in the pre-market, up by 2.6 per cent after it beat expectations in the first quarter. The retailer's still reeling from the collapse of its merger with Office Depot that fell apart earlier this month and sent shares in the company down by 20 per cent.
Social network kingpin and Facebook chief executive Mark Zuckerberg will meet with members of the conservative media later following reports the company was squashing right-wing news on its news feed. He's expected to offer his reassurances the social network, used by over a billion people around the world, does not allow political leanings to influence the stories people see.
Read more: Don’t give in to the Twitter mob: Social media is just an echo chamber
Software giant Microsoft earlier announced it would be selling off the handset business it acquired from Nokia just two years ago. The move means Microsoft is practically throwing in the towel in its fight with rivals Apple and Samsung for the control over the global mobile phone market.
Microsoft's mobile phone business has been bleeding cash after sales of its Lumia handset business collapsed over the last quarter. Development of its mobile operating system Windows 10 Mobile will continue however, and the one-time world's most valuable company will continue to support existing devices.
On the plus side, the Nokia brand will be returning to the market…
Companies reporting earnings today
Big name retailers Target and Staples are reporting this morning and Staples managed to beat expectations, though barely.
After the markets close we'll get the latest numbers from Urban Outfitters; Sales Force; American Eagle, and Cisco Systems.
Economic data
Today all eyes will be on the latest Fed minutes from its April policy meeting, hitting the wires at 7pm London time.
Read more: The Federal Reserve has created the conditions for another financial crisis
Discussion around inflation edging towards the two per cent target as well as low unemployment will be clues as to when we can expect the next interest rate hike to come.
We also have the latest weekly crude inventory report released at 3:30pm London time that could send oil prices higher still.