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U.S. futures slip ahead of oil inventory data; Disney down 5%

Published 05/11/2016, 07:05 AM
Updated 05/11/2016, 07:05 AM
© Reuters.  Wall Street futures point to a lower open ahead of oil inventories; Disney sinks after earnings

Investing.com – After Wall Street had its best day in more than a month in the prior session, U.S. futures pointed to a lower open on Wednesday as market players kept an eye on movements in the oil market and Disney cast a somber shadow on the Dow before a number of key earning reports that may provide further insight on the health of the U.S. consumer.

The blue-chip Dow futures lost 52 points, or 0.29%, by 10:59AM GMT, or 6:59AM ET, the S&P 500 futures lost 5 points, or 0.22%, while the tech-heavy Nasdaq 100 futures traded down 9 points, or 0.20%.

In a session with no major macroeconomic data, traders looked ahead to the U.S. Energy Information Administration’s weekly report on oil supplies at 14:30GMT, or 10:30AM ET, amid expectations for a gain of 0.7 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories rose by 3.5 million barrels in the week ended May 6, blowing past expectations for a build of only 300,000.

In that context, oil prices spent early European trading in the red based on expectations that the official data will show that U.S. crude stockpiles rose to a record high last week, but crept back into positive territory as traders began their day stateside.

U.S. crude futures gained 0.40% to $44.84 by 11:03AM GMT, or 7:03AM ET, while Brent oil traded up 1.03% to $45.99.

In company news, Walt Disney Company (NYSE:DIS) tumbled almost 5% in the pre-market on Wednesday and was expected to put downward pressure on the Dow after the entertainment giant reported a rare miss after Tuesday’s closing bell as advertising and subscriptions declined at sports channel ESPN and theme park revenue came in weaker than expected.

Office Depot Inc (NASDAQ:ODP) plunged more than 26% in Tuesday’s after-hours market as the office supply retailer terminated plans for a $6.3 billion merger with Staples Inc (NASDAQ:SPLS) after a U.S. judge approved a request from the Federal Trade Commission for a temporary injunction based on antitrust concerns.

The department store giant Macy’s, automaker Toyota Motor, and fast food chains Wendy’s and Jack in the Box were among companies on tap to report quarterly numbers on Wednesday.

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