Stock futures flat as oil prices remain under pressure

[June 22, 2017]  By Sruthi Shankar

(Reuters) - U.S. stock index futures were little changed on Thursday as oil edged up from multi-month lows but prices remained under pressure.

U.S. crude futures  were up 0.4 percent at $42.70 per barrel. They closed down 1.6 percent on Wednesday after touching their lowest level since August. Global benchmark Brent traded at around $45.24.

Since peaking in late February, crude has dropped around 20 percent, skidding into bear market territory, despite OPEC-led efforts to balance the market.

The S&P energy index, which has lost 14.9 percent this year, is the worst performing sector, largely underperforming the broader S&P 500 index.

Investors are concerned that the drop in oil prices could affect inflation. Inflation remains stubbornly below the Federal Reserve's 2 percent target, even as the central bank adopts a hawkish tone regarding future rate hikes.

Economic data on Thursday is expected to show jobless claims for last week increased by 3,000 to 240,000, but remain at levels consistent with a tight labor market. The data is expected at 8:30 a.m. ET (1230 GMT).

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 2, 2017. REUTERS/Brendan McDermid

On Wednesday, the S&P 500 and Dow indexes were weighed down by falling energy shares as oil prices fell, while healthcare and tech stocks helped lift the Nasdaq.

Oracle's shares were up 10 percent at $50.98 in premarket trading as the business software maker forecast an upbeat current-quarter profit.

Staples was up 7.3 percent at $9.30 after Reuters reported that private equity firm Sycamore Partners was in advanced talks to acquire the company in a deal that could top $6 billion.

U.S.-listed shares of Novartis were up 2.27 percent at $84.43 after its drug designed to reduce inflammation showed surprising efficacy in cutting cardiovascular risk for people who had survived a heart attack.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty)

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