* Michael Kors falls after weak forecast
* Fed Beige Book expected at 2 p.m. ET
* All three major indexes on track to post monthly gains
* Futures up: Dow 39 pts, S&P 5.5 pts, Nasdaq 25 pts
(Adds details, comment, updates prices)
By Tanya Agrawal
May 31 U.S. stocks looked set to open higher on
Wednesday, with the three major indexes on track to end the
month higher, shrugging off the impact of a steep fall in oil
The S&P 500 and the Nasdaq Composite look set to post their
best monthly percentage gain since February.
Oil prices fell by more than 2 percent to a three-week low,
as rising Libyan production fueled concerns that OPEC-led output
cuts are being undermined by several countries that are excluded
from the deal.
The S&P 500 and the Nasdaq snapped their seven-day winning
streak on Tuesday as weakness in the energy and financial
sectors outweighed gains in technology shares.
With stocks at record levels and the earnings season in the
rear-view mirror, analysts say investors need to see strong
economic data and progress on President Trump's pro-business
policies for further meaningful gains.
"We had the Memorial day weekend and volumes on Tuesday were
low, so this is the first day that Wall Street is coming back in
full force and we could see a resumption of strong equity buying
that we saw last week," said Andre Bakhos, managing director at
Janlyn Capital in Bernardsville, New Jersey.
Dow e-minis were up 39 points, or 0.19 percent, with
18,194 contracts changing hands at 8:31 a.m. ET (1231 GMT).
S&P 500 e-minis were up 5.5 points, or 0.23 percent,
with 111,430 contracts traded.
Nasdaq 100 e-minis were up 25 points, or 0.43
percent, on volume of 23,045 contracts.
While first-quarter economic data was mixed, with dips in
consumer spending and sentiment, continuing strength in the
labor market suggests economic activity will regain momentum as
the year progresses.
The Federal Reserve issues its Beige Book at 2 p.m. ET (1800
GMT), a compendium of anecdotes on the health of the economy,
that will likely provide further evidence that the economy
continues to strengthen giving the Federal Reserve impetus to
raise rate next month.
Traders currently see an 86.6-percent chance of a
quarter-point rate hike at the Fed's June meeting, according to
Thomson Reuters data.
The National Association of Realtors' report is likely to
show that pending home sales for April increased 0.5 percent,
while the ISM's Chicago PMI reading for May is expected to
slightly dip to 57.0.
Shares of Michael Kors fell 5.5 percent to $34.30
after the luxury fashion retailer gave a bleak full-year
forecast and said it would shut more than 100 full-price retail
stores in the next two years.
Mallinckrodt was up 2.5 percent at $44.77 in
premarket trading, after sources said the drugmaker is exploring
a sale of its generic drug unit, in a deal that could fetch as
much as $2 billion.
Analog Devices rose 6.1 percent to $90 after the
chipmaker's quarterly results came in above expectations.
Exact Sciences was up 8.9 percent at $35.55 after
two brokerages raised their price target on the diagnostic test
(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)