* U.S. retail sales increase 0.3% in December
* Chipmakers rise after TSMC's strong outlook
* Morgan Stanley jumps on new objectives, earnings
* Futures up: Dow 0.30%, S&P 0.33%, Nasdaq 0.39%
(Adds comment, updates prices)
By Sruthi Shankar
Jan 16 (Reuters) - U.S. stocks were poised to open at record
highs on Thursday, after the United States and China signed an
initial trade agreement and Morgan Stanley wrapped up big bank
earnings on a strong note.
The benchmark S&P 500 .SPX was set to open above 3,300
mark for the first time ever. The blue-chip Dow Jones Industrial
Average .DJI and the Nasdaq .IXIC were also on track to open
at new all-time highs.
Wall Street bank Morgan Stanley MS.N rose 6.5% in
premarket trading after beating quarterly profit estimates and
raising its performance goals. Investors took heart from the signing of the trade deal on
Wednesday that paused an 18-month long tariff war that had
bruised financial markets and crimped global growth.
China is expected to boost purchases of U.S. goods and
services in exchange for the rolling back of some tariffs as
part of the deal, but concerns remain with several thorny issues
still unresolved. "The Phase 1 trade deal has been largely priced into
markets," said Peter Kenny, founder of Strategic Board Solutions
"Any movement forward from here, at least in the near-term,
is going to be driven by earnings. So far, we do see a sort of a
positive tone set by the financials."
Analysts expect earnings at S&P 500 companies to have
dropped 0.5% in the fourth quarter, according to Refinitiv IBES
data, the second consecutive decline.
At 8:52 a.m. ET, Dow e-minis 1YMcv1 were up 86 points, or
0.3%. S&P 500 e-minis EScv1 were up 10.75 points, or 0.33% and
Nasdaq 100 e-minis NQcv1 were up 35.75 points, or 0.39%.
Shares of semiconductor stocks, including Micron Technology
Inc MU.O and Advanced Micro Devices Inc AMD.O , were up about
a percent after a promising outlook from the world's top
contract chipmaker TSMC 2330.TW TSM.N pointed to a recovery
in the chip sector. Data from the Commerce Department showed U.S. retail sales
rose 0.3% in December, in-line with expectations. The numbers follow disappointing holiday sales reports from
retailers including Target Corp TGT.N and J.C. Penney Co Inc
JCP.N spooked investors.
Signet Jewelers Ltd SIG.N jumped 33.8% after raising 2020
adjusted earnings estimate on the back of upbeat holiday sales.
Tesla Inc TSLA.O fell 4.4% after Morgan Stanley downgraded
the stock to "underweight" from "equal weight".