Wall Street set to open lower as investors digest data

By Tanya Agrawal

REUTERS - U.S. stocks looked set to open slightly lower on Tuesday after a three-day holiday weekend as investors assessed a barrage of economic data for clues regarding the health of the economy.

While stocks are trading at record levels, helped by strong first-quarter corporate earnings, investors are keeping an eye on economic data as well as political developments in Washington.

Data showed U.S. consumer spending recorded its biggest increase in four months in April and monthly inflation rebounded, pointing to firming domestic demand early in the second quarter.

The personal consumption expenditures (PCE) price index rebounded 0.2 percent in April, reversing March's 0.2 percent drop. The core PCE price index, which is the Fed's preferred inflation measure, increased 1.5 percent in the 12 months through April. The central bank has a 2 percent target.

The U.S. Conference Board is likely to report that its consumer confidence index was little changed in May.

"We are expecting confidence to slip as the political turmoil in Washington weighs. Nonetheless, the confidence index is expected to stay within its upper range," Peter Cardillo, chief market economist at First Standard Financial, wrote in a note. "We look for a mixed session as the macro news is digested."

Dow e-minis were down 28 points, or 0.13 percent, with 35,902 contracts changing hands at 8:42 a.m. ET (1242 GMT).

S&P 500 e-minis were down 4 points, or 0.17 percent, with 202,748 contracts traded.

Nasdaq 100 e-minis were down 6.25 points, or 0.11 percent, on volume of 45,522 contracts.

Oil prices were lower, pressured by concerns that production cuts by the world's big exporters may not be enough to drain a global glut that has depressed the market for almost three years.

CardConnect's shares jumped 11 percent to $15.15 in premarket trading after First Data agreed to buy the payment processor for $750 million. First Data slipped 0.2 percent.

Protagonist Therapeutics soared 46 percent to $12 after the drug developer signed a collaboration with Johnson & Johnson to develop a drug for inflammatory bowel disease. Johnson & Johnson was little changed at $127.

(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)