High interest rate, oil prices sets Wall Street higher

U.S. stocks were set to open higher on Wednesday, after consumer prices in October rose as expected, keeping the Federal Reserve on track for gradual interest rate hikes, while a rebound in oil prices lifted energy stocks.

Shares of energy companies including Exxon Mobil Corp and Chevron Corp gained about 1 per cent in premarket trading as oil prices recouped some of the previous session's losses when it had fallen 7 per cent.

The Labor Department said U.S. consumer prices rose 0.3 per cent last month, after edging up 0.1 per cent in September, amid a rise in gasoline costs and rents.

Excluding volatile food and energy components, the CPI climbed 0.2 per cent. Both numbers came in line with expectations, tempering worries about faster rate hikes by the Fed.

With a December move almost fully priced in, investors are looking for hints on how many times the central bank would raise rates in 2019.

"It wouldn't take the much good news, whether it is stabilization in energy prices, benign CPI and good news on Brexit, any combination of those will propel us higher," said Art Hogan, chief market strategist at B. Riley FBR in New York.

A bitter trade dispute between the United States and China, worries about rising interest rates and slowing corporate profits have stalled gains for U.S. stocks, with the S&P 500 trading 7 per cent below its record level.

Trade tensions took a step back on Tuesday after U.S. economic adviser Larry Kudlow said Washington welcomed the resumption of talks with China on trade.

At 8:54 a.m. ET, Dow e-minis was up 110 points, or 0.43 per cent. S&P 500 e-minis were up 13.5 points, or 0.49 per cent and Nasdaq 100 e-minis were up 39 points, or 0.57 per cent.

Department store operator Macy's Inc was up 2 per cent after raising its annual earnings forecast.

Snap Inc fell 6.3 per cent after Reuters reported that U.S. regulators have subpoenaed the social media app maker for information about its March 2017 initial public offering.

U.S. shares of Canada Goose Holdings Inc rose 14.5 per cent after the luxury apparel maker topped profit estimates and raised its forecast for the full year.