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US STOCKS-Wall St set to rise again on trade deal hopes

Published 05/12/2019, 15:10
Updated 05/12/2019, 15:18
© Reuters.  US STOCKS-Wall St set to rise again on trade deal hopes
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* Major stock indexes set to rise for second day

* Dollar General gains after raising FY profit forecast

* Nike rises on reported Goldman Sachs upgrade

* Futures up: Dow 0.29%, S&P 500 0.26%, Nasdaq 0.36%

(Adds comments, updates market action)

By Shreyashi Sanyal

Dec 5 (Reuters) - U.S. stocks looked set to open higher on

Thursday on brighter hopes of a preliminary trade deal between

the United States and China.

Headlines around trade suggested the world's two largest

economies were closer to agreeing how many tariffs would be

rolled back in a "phase one" trade deal, while President Donald

Trump said talks with China were going "very well". Wall Street's main indexes snapped a three-day losing streak

in the previous session on growing expectations of a trade deal,

putting the benchmark S&P 500 .SPX index just 1% away from an

all-time high hit last week.

"There doesn't seem to be any increased negative talk about

China so I guess the absence of that is allowing markets to

drift higher," said Kim Forrest, chief investment officer at

Bokeh Capital Partners in Pittsburgh.

"In fact, it feels like both sides understand that reducing

some of the tariffs is what needs to happen."

However, if no agreement is reached soon, more tariffs on

Chinese goods will kick in from Dec. 15.

Shares of tariff-sensitive semiconductor companies looked

set to rise for the second straight day, with Micron Technology

Inc MU.O , Advanced Micro Devices Inc AMD.O and Nvidia Corp

NVDA.O gaining about 1% each in premarket trading.

At 8:40 a.m. ET, Dow e-minis 1YMcv1 were up 79 points, or

0.29%. S&P 500 e-minis EScv1 were up 8 points, or 0.26% and

Nasdaq 100 e-minis NQcv1 were up 29.75 points, or 0.36%.

Investors also seemed to shrug off Wednesday's lackluster

readings on domestic services sector activity and private

payrolls growth as they await the Labor Department's non-farm

payrolls data due Friday. U.S. trade deficit dropped to its

lowest level in nearly 1-1/2 years in October, data showed on

Thursday. Among stocks, Dollar General Corp DG.N gained about 2.7%

after the discount store chain raised its full-year profit

forecast. Nike Inc NKE.N shares climbed 2% after a report said

Goldman Sachs upgraded the sportswear maker's stock to "buy"

from "neutral". Kroger Co KR.N dropped 2% as the supermarket chain

reported a 17% fall in quarterly profit.

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