US STOCKS-Futures up on hopes of progress in trade war; Boeing shares slip

Published 21/10/2019, 12:46
Updated 21/10/2019, 12:54
© Reuters.  US STOCKS-Futures up on hopes of progress in trade war; Boeing shares slip

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* Futures up: Dow 0.11%, S&P 500 0.21%, Nasdaq 0.27%

By Shreyashi Sanyal

Oct 21 (Reuters) - Wall Street looked set to start the week

on an upbeat note on Monday, as investors hoped for progress in

resolving the U.S.-China trade war, but a fall in Boeing's

shares kept a lid on early gains.

Chinese Vice Premier Liu He said on Saturday that Beijing

would work with Washington to address core concerns, adding to

optimism from President Donald Trump's comments on Friday that

he expected a trade deal to be signed by mid-November.

Microsoft Corp MSFT.O rose 0.8% in premarket trading after

German business software group SAP SAPG.DE said it had signed

a three-year cloud partnership with the company. However, Boeing Co BA.N was set to extend a slide from the

previous session as two brokerages downgraded the stock after

leaked messages from a former test pilot showed he might have

unintentionally misled regulators about the safety of the

grounded 737 MAX jet. Shares of the planemaker fell nearly 2%.

Wall Street has been steadily recovering after a rough start

to the month on signs of progress in talks between the world's

two largest economies.

The benchmark S&P 500 .SPX index ended Friday with its

second weekly gain, while the Nasdaq .IXIC rose for three

weeks in a row.

At 7:19 a.m. ET, Dow e-minis 1YMcv1 were up 29 points, or

0.11%. S&P 500 e-minis EScv1 were up 6.25 points, or 0.21% and

Nasdaq 100 e-minis NQcv1 were up 21 points, or 0.27%.

Investors are now gearing up for another batch of reports

after a strong start to the third-quarter earnings season last

week, with big technology companies including Microsoft Corp

MSFT.O and Intel Corp INTC.O set to report their earnings

this week.

Analysts project S&P 500 earnings dropping 3.1%, compared

with a year earlier, marking the first contraction since 2016,

according to Refinitiv data.

But of the 73 companies that have reported results so far,

nearly 84% have topped analysts' estimates.

Oilfield services provider Halliburton Co HAL.N dipped

0.4% after reporting a 32% slump in third-quarter profit, hit by

a slowdown in shale drilling in North America, its biggest

market. Drug distributors Cardinal Health Inc CAH.N fell 3% and

McKesson Corp MCK.N slipped 4.1%, ahead of a trial over the

U.S. opioid epidemic after drug companies and local governments

failed to reach a settlement on Friday.

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