US STOCKS-Futures rise as Mnuchin's comments bolster trade optimism

Published 24/09/2019, 12:39
Updated 24/09/2019, 12:41
© Reuters.  US STOCKS-Futures rise as Mnuchin's comments bolster trade optimism

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* Futures up: Dow 0.30%, S&P 0.33%, Nasdaq 0.36%

By Ambar Warrick

Sept 24 (Reuters) - U.S. stock index futures rose on Tuesday

as Washington confirmed that trade negotiations with China would

resume in two weeks, after the cancellation of a planned visit

by Chinese delegates to U.S. farms last week fueled uncertainty

over the talks.

Treasury Secretary Steven Mnuchin said on Monday he and

Trade Representative Robert Lighthizer would meet with Chinese

Vice Premier Liu He for talks in early October, raising optimism

over a possible breakthrough in the prolonged trade war, which

has been a drag on global economic growth. Mnuchin also clarified that the Trump administration had

requested Chinese officials to cancel a visit to U.S. farming

regions last Friday. The cancellation had caused a sharp

pullback in U.S. stocks on the day.

Trade-sensitive chipmaker stocks rose, with Intel Corp

INTC.O , Nvidia Corp NVDA.O and Advanced Micro Devices Inc

AMD.O advancing between 0.5% and 1.1% in premarket trade.

Even as trade talks remain the primary focus, investors will

also watch the Conference Board's U.S. consumer confidence

reading for September at 10:00 a.m. ET (1400 GMT), which is

expected to come in at 133.5, from a reading of 135.1 in August.

The reading will follow mixed economic data from the United

States and dismal manufacturing surveys out of the euro zone on

Monday that added to investor apprehensions over slowing global

growth.

Still, the S&P 500 .SPX came within striking distance of

its July all-time high last week after the Federal Reserve cut

interest rates and left the door open for further easing. The

index is now 1.2% away from that peak.

Data due later this week, which includes the Fed's preferred

gauge for inflation, will be pivotal in determining U.S.

economic health ahead of the third-quarter earnings season and

the central bank's next policy meeting in October.

At 7:00 a.m. ET, Dow e-minis 1YMcv1 were up 80 points, or

0.3%. S&P 500 e-minis EScv1 were up 9.75 points, or 0.33% and

Nasdaq 100 e-minis NQcv1 were up 28.5 points, or 0.36%.

Iphone maker Apple Inc's AAPL.O shares gained 0.8% after

Jefferies assumed coverage with a "buy" rating.

Shares of video streaming platform Netflix Inc NFLX.O fell

0.6% after Pivotal Research cut its price target.

Nike Inc NKE.N rose 0.5%, ahead of the world's largest

sportswear maker's first-quarter results after the bell.

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