Investing.com - Wall Street futures pointed to a slightly higher open on Monday as the Dow looked set to take another shot at the 20,000 psychological level, while investors looked ahead to a gauge of activity in the service sector and a speech from Federal Reserve (Fed) chair Janet Yellen.
The blue-chip Dow futures gained 29 points, or 0.15%, by 6:50AM ET (11:50GMT), the S&P 500 futures advanced 3 points, or 0.12%, while the tech-heavy Nasdaq 100 futures traded up 6 points, or 0.12%.
Investors will have little data to digest at the beginning of what will be the last full trading week for U.S. stocks in 2016.
Markit will publish its preliminary read of service sector activity for December, along with the composite result that includes the manufacturing sector at 9:45AM ET (14:45GMT).
Then at 1:30PM ET (18:30GMT), Yellen will be delivering a speech on the state of the job market at the University of Baltimore 2016 Midyear Commencement in Baltimore, Maryland.
The speech comes just days after the U.S. central bank raised its benchmark interest rate for only the second time since the financial crisis and policymakers also increased their expectations for the number of rate hikes in 2017 to three, from the prior two.
Markets priced in the possibility of three additional hikes by the end of next year at 46%, according to Investing.com's Fed Rate Monitor Tool.
The first 25 basis point move was not expected to occur until June when odds stood at 70.9%.
Gold prices edged up during European hours on Monday, extending its recovery from ten-month lows as the U.S. dollar pulled back from recent highs.
Gold for February delivery on the Comex division of the New York Mercantile Exchange tacked on $2.85, or 0.25%, to $1,140.25 a troy ounce by 6:54AM ET (11:54GMT), after rising $7.60, or 0.67%, in the prior session.
Prices of the yellow metal sank to $1,124.30 last Thursday, a level not seen since February 2.
The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.03% at 102.91 in early trade, slipping from last week's 14-year high of 103.55, as a bout of profit taking kicked in ahead of the year-end holidays.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, oil prices edged higher on Monday as investors appeared to believe bet that there would be a high level of compliance from major oil producers in their deal to cut levels of output starting in January.
JP Morgan increased its estimates for oil prices in 2017 based on their view that compliance with the agreement was being treated overly cautiously by the consensus, though these analysts expected downside pressure in the fourth quarter on the back of cheating in the deal and an increase in U.S. shale output as a result of higher prices.
U.S. crude futures edged forward 0.6% to $52.98 by 6:55AM ET (11:55GMT), while Brent oil inched up 0.13% to $55.28.
In company news, eyes would be watching Apple (NASDAQ:AAPL) as the technological gadget maker said it will launch its appeal this week to the European Union ruling that it should pay €13 billion ($13.8 billion) in taxes at the region’s Commission said its benefits from paying taxes in Ireland amounted to illegal state aid.
In earnings, Lennar (NYSE:LEN) could see upside in Monday’s session after the homebuilder beat consensus on both the top and bottom line of its fiscal fourth quarter report.
Elsewhere, focus was on the financial sector as shares in Italy's Banca Monte dei Paschi di Siena (MI:BMPS) sank nearly 6% as it made a last-ditch attempt to raise €5 billion ($5.2 billion) by the end of the year and avoid a state bailout.
Deutsche Bank (DE:DBKGn) also contributed to the risk-off sentiment in the European financial sector, leading both the German DAX and the benchmark Euro Stoxx 50 lower after the lender agreed to pay more than $40 million in a settlement to end government investigations into allegations of misinforming clients with regard to dark pool private trading venues.
Further putting nerves over the sector on edge was Ukraine’s announcement that it had declared the country’s largest bank insolvent.