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US STOCKS-Wall St set for stronger open despite mixed data

Published 27/09/2019, 14:21
© Reuters.  US STOCKS-Wall St set for stronger open despite mixed data
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* Futures up: Dow 0.18%, S&P 0.23%, Nasdaq 0.19%

* U.S. consumer spending barely rises in August

* Wells Fargo rises in premarket on new CEO appointment

* Micron Tech falls on weak Q1 profit outlook

(Adds comment, detail, updates numbers)

By Ambar Warrick and Medha Singh

Sept 27 (Reuters) - U.S. stock markets were set to gain on

Friday but the S&P 500 and Nasdaq may still end a volatile week

in the red as the shock of the launch of an impeachment

investigation into President Donald Trump counters hopes of

progress with China on trade.

Futures for all of Wall Street's three main indices were up

around 0.2%, with shares in U.S. banking major Wells Fargo & Co

WFC.N up 3.3% after it named a new chief executive while

Facebook Inc FB.O , Netflix NFLX.O , and Amazon.com Inc

AMZN.O all recovered some of this week's losses.

Upbeat comments late on Thursday from China's foreign

minister Wang Yi helped halt losses as investors await a new

round of trade talks between Washington and Beijing next month.

Yet analysts and traders say the volatility of the day to

day messages from both sides in a conflict that dates back over

a year has left investors with little faith that a full-scale

resolution is in prospect any time soon.

"Could we get a positive headline on trade? Yes, but it will

be optics at best," said Peter Cecchini, chief market strategist

at Cantor Fitzgerald in New York. "I don't expect anything that

happens before the elections to be a comprehensive deal."

"Investors are generally ignoring a plethora of risks... One

of the reasons they are willing to do that is foreign investors

need a place to go and on a relative basis the United States is

still sort of the best house in a bad global neighborhood."

Markets this week have been particularly vulnerable to

headlines on Sino-U.S. trade talks and political ructions in

Washington, before the start of third quarter corporate

earnings.

Futures were little changed after data showed U.S. consumer

spending barely rose in August, suggesting that the economy's

main growth engine was slowing after accelerating sharply in the

second quarter. New orders for key U.S.-made capital goods also unexpectedly

fell in August, but the so-called core PCE price index, the

Fed's preferred inflation measure, rose to 1.8% in August, the

biggest rise in prices since January. University of Michigan survey on consumer sentiment is

expected at 10:00 a.m. ET.

Micron Technology Inc MU.O tumbled 5.1% premarket as it

forecast first-quarter profit below Wall Street targets, saying

it was "mindful" of economic and trade uncertainty even though

there were signs of an uptick in memory chip demand.

Other semiconductor companies Advanced Micro Devices Inc

AMD.O , Nvidia Corp NVDA.O dropped about 0.8% and 1.1%,

respectively.

At 8:54 a.m. ET, Dow e-minis 1YMcv1 were up 48 points, or

0.18%. S&P 500 e-minis EScv1 were up 7 points, or 0.23% and

Nasdaq 100 e-minis NQcv1 were up 14.5 points, or 0.19%.

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