US STOCKS-Wall St eyes higher open on trade optimism; Boeing weighs

Published 21/10/2019, 14:11
Updated 21/10/2019, 14:18
© Reuters.  US STOCKS-Wall St eyes higher open on trade optimism; Boeing weighs

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* Microsoft up on three-year cloud deal with SAP

* Boeing to extend fall after brokerage downgrades

* Coty jumps on plan to sell professional beauty business

* Futures up: Dow 0.16%, S&P 500 0.39%, Nasdaq 0.47%

(Updates prices, adds comments)

By Shreyashi Sanyal

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

on an upbeat note on Monday on fresh signs of progress in a

long-awaited resolution to the U.S.-China trade war, but a fall

in Boeing's shares capped early gains.

White House adviser Larry Kudlow said in an interview to Fox

Business that tariffs scheduled for December could be withdrawn

if trade negotiations continue to go well.

His comments added to optimism from positive remarks by

Beijing and Washington late last week indicating that a trade

deal might be in the offing. U.S. chipmakers with a large exposure to China rose in

premarket trading, with Advanced Micro Devices Inc AMD.O ,

Nvidia Corp NVDA.O and Micron Technology Inc MU.O gaining

between 1% and 2%.

"Any kind of positive development on trade just gets people

a little excited, although it is too optimistic to believe that

they will reach a whole trade deal as early as mid-November,"

said Robert Pavlik, chief investment strategist at SlateStone

Wealth LLC in New York.

Microsoft Corp MSFT.O rose 0.6% 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 2.5%.

Wall Street has recovered after a rough start to the month

on signs of progress in talks between the world's two largest

economies and as the third-quarter earnings season kicked off on

a strong footing.

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 8:58 a.m. ET, Dow e-minis 1YMcv1 were up 44 points, or

0.16%. S&P 500 e-minis EScv1 were up 11.75 points, or 0.39%

and Nasdaq 100 e-minis NQcv1 were up 36.75 points, or 0.47%.

Investors are now gearing up for earnings reports from tech

heavyweights Microsoft Corp MSFT.O and Intel Corp INTC.O

this week.

Analysts have projected the first earnings contraction since

2016 for S&P 500 companies, but of the 73 companies that have

reported results so far, nearly 84% have topped analysts'

estimates.

Oilfield services provider Halliburton Co HAL.N dropped

1.5% after reporting a 32% slump in third-quarter profit, hit by

a slowdown in shale drilling in North America, its biggest

market. Coty Inc COTY.N jumped 11.2% after the cosmetics maker

said it was planning to sell its professional beauty business

that houses brands such as Wella and OPI. Drug distributors Cardinal Health Inc CAH.N and McKesson

Corp MCK.N pared some losses after the companies, along with

AmerisourceBergen Corp ABC.N and Teva Pharmaceutical

Industries TEVA.TA , reached a settlement with two Ohio

counties related to the opioid crisis.

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