US pre-open: Flat start expected as investors digest Venezuela fallout

(Sharecast News) - US stock futures were pointing to a flat start on Tuesday as markets pause at or close to record highs with investors continuing to digest the fallout from Donald Trump's hugely controversial military raid of Venezuela. Strong gains from defence and energy stocks on Monday powered the Dow Jones Industrial Average to a fresh closing high of 48,977.18 - after briefly topping the 49,000 mark for the first time ever - following Trump's assertion that America is now running the owner of the world's largest oil reserves.

The S&P 500 and Nasdaq also both gained, and are currently trading within a whisker of their respective peaks.

However, things were looking more muted on Tuesday morning, with futures across all three indices trading between -0.1% and +0.1% as of 1056 GMT.

Energy stocks in particular were given a boost on Monday from a rising oil price as traders assessed the upheaval in South America. WTI crude was up 0.2% at $58.41 a barrel on Tuesday morning after having jumped 1.7% the previous day.

"US oil majors rose sharply on Monday as the market priced in US oil companies benefitting from the deposing of the Maduro administration in Venezuela," said Kathleen Brooks, research director at XTB. However, she added: "It will take many years before Venezuela can pump large quantities of oil again, so the upward impact on oil stocks could be short lived."

Chevron, the only remaining major American oil producer in Venezuela, was trading higher ahead of the opening bell following a 5% surge on Monday. Futures of petroleum refiners Valero and Phillips 66, and oilfield services groups SLB and Halliburton were showing a more subdued start after a strong performance the previous session.

In other news, the S&P Global US composite PMI for December is due out at 1445 GMT, while a scheduled speech from Richmond Federal Reserve president Thomas Barkin could garner some attention.