By Yashaswini Swamynathan
(Reuters) – Wall Street was set to open higher for the first time in three days on Tuesday as investors await Federal Reserve Chair Janet Yellen’s speech this week for clues on the next interest rate hike.
As the U.S. earnings season winds down, the focus shifts to the annual meet of global central bankers at Jackson Hole, Wyoming, from Thursday, for clues on the health of the global economy and Yellen’s stand on raising rates.
Yellen is scheduled to speak on Friday and will use the opportunity to either support or dismiss the perceived hawkish stand that Fed policymakers have taken in recent days.
Various officials, including Vice Chairman Stanley Fischer, have hinted that a rate hike in the coming months was possible.
“There is strong evidence that investors are staying on the sidelines ahead of Yellen’s speech,” said Steven Wieting, global chief investment strategist at Citi Private Bank.
“But, by no means will the Fed want to cut off the bait for the September or December meeting.”
Traders’ bets of a rate hike in September stand at 15 percent, and go up to 40 percent for December, according to the CME Group’s FedWatch tool.
Dow e-minis <1YMc1> were up 44 points, or 0.24 percent at 8:21 a.m., with 16,727 contracts changing hands.
S&P 500 e-minis
Nasdaq 100 e-minis
Oil prices were off 0.7 percent as worries of oversupply trumped hopes of an output freeze. However, the decline was less severe than the 3.4 percent slide on Monday.
Shares of Best Buy
Data due Tuesday is expected to show new home sales fell 2 percent to a 580,000-unit pace in July compared with June. The data is scheduled to be released at 10:00 a.m. ET (1400 GMT).
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D’Souza)