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US STOCKS-Futures jump on report of U.S., China nearing phase-one trade deal

Published 04/12/2019, 13:33
Updated 04/12/2019, 13:36
© Reuters.  US STOCKS-Futures jump on report of U.S., China nearing phase-one trade deal
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* Futures up: Dow 0.53%, S&P 500 0.45%, Nasdaq 0.60%

By Shreyashi Sanyal

Dec 4 (Reuters) - U.S. stock index futures shot up on

Wednesday, putting Wall Street's main indexes on course to snap

a three-day losing streak, following a report that the United

States and China were moving closer to signing a 'phase-one'

trade deal.

Washington and Beijing are getting close to agreeing on the

amount of tariffs to be rolled back, Bloomberg reported on

Wednesday, a day after comments from President Donald Trump and

Commerce Secretary Wilbur Ross dampened hopes of a possible

near-term agreement. The comments had pushed all the three major stock indexes

further away from last week's record highs that were fueled by

optimism that an interim deal between the two countries was in

the works. The S&P 500 index .SPX is now about 2% away from

its record high.

The back-and-forth on trade has also made investors wary

after the final month of 2018 was the worst December on Wall

Street since the Great Depression. Tariff-exposed semiconductor companies attempted a comeback

on Wednesday, with Micron Technology Inc MU.O , Nvidia Corp

NVDA.O and Intel Corp INTC.O rising between 0.5% and 1.6% in

premarket trading.

Market participants also waited for the ADP National

Employment report, often considered a precursor to the Labor

Department's more comprehensive non-farm payrolls data, which is

expected to show 140,000 jobs were added in November, compared

to 125,000 in October.

A reading of the ISM services PMI will also be released

later in the day and is expected to be 54.5 in November,

compared to 54.7 in October.

At 7:04 a.m. ET, Dow e-minis 1YMcv1 were up 146 points, or

0.53%. S&P 500 e-minis EScv1 were up 14 points, or 0.45% and

Nasdaq 100 e-minis NQcv1 were up 49.25 points, or 0.6%.

Among stocks, Google-parent Alphabet Inc GOOGL.O rose 1%

as Sundar Pichai took over as CEO after Larry Page and Sergey

Brin stepped aside. Johnson & Johnson JNJ.N gained 0.9% after it said on

Tuesday that recent tests showed that Johnson's Baby Powder was

free of asbestos.

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