US STOCKS-Wall St set for higher open as U.S.-China trade optimism returns

Published 22/11/2019, 15:08
Updated 22/11/2019, 15:09
© Reuters.  US STOCKS-Wall St set for higher open as U.S.-China trade optimism returns

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* Trump says deal "potentially very close" - Fox News

* China says wants to work out a trade deal

* Nordstrom jumps on 2019 forecast raise

* Tesla slips after unveiling electric pickup truck

* Futures up: Dow 0.2%, S&P 0.2%, Nasdaq 0.25%

(Adds comments, updates market action)

By Arjun Panchadar

Nov 22 (Reuters) - Wall Street was set to open higher on

Friday as latest comments from China and U.S. President Donald

Trump lifted hopes of a trade deal after conflicting headlines

this week knocked stock indexes off record highs.

U.S. stock index futures rose in volatile trading as Trump

told Fox News that a trade deal with China is "potentially very

close". Beijing had said earlier it wanted to work out an

initial agreement with Washington, following reports that a

truce could be delayed to 2020. Global shares have retreated from near-two year highs scaled

in recent weeks on hopes of a resolution to the trade war that

has dented business sentiment, curtailed investment and hurt

economic growth. MKTS/GLOB

A report on Friday said a hedge fund founded by billionaire

Ray Dalio has bet more than $1 billion that stock markets around

the world will fall by March 2020. The next date in the trade spat to watch is Dec. 15, when

U.S. tariffs kick in on Chinese goods including holiday gift

items such as electronics and Christmas decorations.

"It's less likely the deal will be signed by the end of this

year, but you may see the Dec. 15 tariffs postponed," said Scott

Brown, chief economist at Raymond James in St. Petersburg,

Florida.

The benchmark S&P 500 index is on course to end the week

with its first decline in seven, while the Nasdaq is eyeing its

first weekly drop in eight. A largely better-than-expected

corporate earnings season also contributed to the rally.

Investors now await U.S. manufacturing and services sector

data, as well as a consumer sentiment survey by the University

of Michigan to gauge the fallout of the dispute on the domestic

economy, which has so far proven fairly resilient.

At 9:03 a.m. ET, Dow e-minis 1YMcv1 were up 55 points, or

0.2%. S&P 500 e-minis EScv1 were up 6.25 points, or 0.2% and

Nasdaq 100 e-minis NQcv1 were up 20.75 points, or 0.25%.

Among stocks trading premarket, Nordstrom Inc JWN.N jumped

8.8% after the retailer raised its 2019 forecast and reported

third-quarter profit above expectations. Gap Inc GPS.N rose 3.2% after edging past lowered

expectations for quarterly profit, and reiterated its plan to

separate Old Navy. However, shares of Tesla Inc TSLA.O dropped 4% after the

automaker unveiled its electric pickup truck.

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