US stocks are looking to bounce back after a dismal performance last week and ahead of a key Fed meeting on Wednesday.
After its worst weekly performance by the Dow since November 2011 it gave up 3.8% over last five sessions the index is seen opening 103 points or 0.63% higher at 17,300. The S&P 500 is seen gaining 0.85% or 17 points to 2007.5, with the Nasdaq up 0.91% or 38.25 points to 4224.
On the economics front, US industrial and manufacturing production data for November is due later today and it is widely expected to show an improvement on the previous month.
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The big focus for investors and traders, however, is Wednesday's Fed update on the timing and pace of interest-rate increases. The Fed's language will be heavily scrutinised for any shift from its previously stated policy of keeping rates on hold for "a considerable time".
As Forbes points out, some pundits took "considerable time" to mean six months after its bond buying ended. As a result, many investors are expecting the Fed to start raising rates some time in the middle of 2015.
Oil prices will remain in sharp focus today following Opec reiterating that it will not try to shore up plunging oil prices by reducing production. Today they touched fresh five and half year lows, with US crude futures falling more than 2.5% to $56.25 per barrel before retracing on losses to stand 1% higher at $58.40.
On the corporate front, pet products retailer PetSmart jumped 5.6% in pre-market trading on news that a private consortium led by BC Partners has agreed to acquire it for $8.7bn.
Meanwhile, a survey by CNN of investment professionals finds that they are expecting the broad S&P 500 survey to gain 8% next year "a solid gain, but not as spectacular as recent years when double-digit increases have been the norm". Many of those surveyed reckon higher interest rates and sluggish global growth will hold the US stockmarket back.
CNN also notes, however, that despite their caution about 2015, the investment professionals believe that the US economy still looks "likethe best house in a bad neighbourhood", considering that Europe and Japan on the verge of recessions and China is slowing, but US growth has accelerated in recent quarters. Those surveyed hope US economic growth will translate to stronger corporate earnings, lifting stock prices.
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