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US STOCKS-Futures jump after China's positive comments on trade

Published 29/08/2019, 12:45
© Reuters.  US STOCKS-Futures jump after China's positive comments on trade
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Futures up: Dow 1%, S&P 0.93%, Nasdaq 1.23%

By Akanksha Rana

Aug 29 (Reuters) - U.S. stock index futures jumped about 1%

on Thursday as China sounded upbeat about its trade talks with

the United States, calming investors unnerved by the prospect of

a recession.

China's commerce ministry said both sides are discussing the

next round of talks scheduled in September and hoped U.S.

officials could cancel the planned additional tariffs to avoid

an escalation, boosting sentiment and driving global stocks

higher. MKTS/GLOB

Trade-sensitive stocks such as Apple Inc AAPL.O and Boeing (NYSE:BA)

Co BA.N rose more than 1% in premarket trading.

Chipmakers, which draw a large part of their revenue from

China also gained, with Intel Corp INTC.O , Qualcomm Inc

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

NVDA.O up between 0.9% and 2.3%.

The Trump administration on Wednesday made official its

additional 5% tariff on $300 billion in Chinese imports and set

collection dates of Sept. 1 and Dec. 15, prompting several

hundreds of U.S. companies to warn of price hikes. Shares of Best Buy Co Inc (NYSE:BBY) BBY.N , the biggest U.S. consumer

electronics retailer, dropped 5.8%, after forecasting annual

same-store sales below analysts' estimates, citing the new U.S.

tariffs set to be imposed on Chinese imports. Wall Street's main indexes are on course to record their

worst monthly performance since a selloff in May, spurred by

worries that tit-for-tat tariffs will drive the global economy

into a recession. Those fears came to the fore after the U.S.

yield curve inversion deepened earlier this week to levels not

seen since 2007. US/

Data from the U.S. Commerce Department in its second

estimate, due at 08:30 a.m. ET (1230 GMT) is likely to show that

gross domestic product increased 2% in the second quarter, after

showing 2.1% growth in its earlier estimate.

Separately, data from the Labor Department, which is also

due at 08:30 a.m. ET, is likely to show that initial jobless

claims rose to 215,000 from 209,000 for the week ended Aug. 24.

At 7:11 a.m. ET, Dow e-minis 1YMcv1 were up 260 points, or

1%. S&P 500 e-minis EScv1 were up 27 points, or 0.93% and

Nasdaq 100 e-minis NQcv1 were up 93.25 points, or 1.23%.

Among other stocks, Box Inc BOX.N tumbled 10% premarket as

investors were disappointed after the cloud content management

platform provider reiterated its full-year earnings outlook.

Dollar General Corp (NYSE:DG) DG.N jumped 6.4% after the discount

retailer beat analysts' estimates for quarterly same-store

sales.

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