* 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 (Reuters) - 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 prices.
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 maker’s shares. (Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)