US STOCKS-Wall St set to rise on hopes of de-escalation in trade war

Published 11/10/2019, 14:02
Updated 11/10/2019, 14:10
© Reuters.  US STOCKS-Wall St set to rise on hopes of de-escalation in trade war

(For a live blog on the U.S. stock market, click LIVE/ or

type LIVE/ in a news window)

* Trump to meet Chinese vice premier at 2:45 p.m. ET

* Chipmakers, Apple rise in premarket trading

* Oil majors mirror gains in crude prices

* Futures up: Dow 0.98%, S&P 500 0.99%, Nasdaq 1.10%

(Updates market action, adds comments)

By Shreyashi Sanyal

Oct 11 (Reuters) - Wall Street was set to rise for a third

straight session on Friday, as investors expected top-level

trade talks between the United States and China to result in a

partial trade deal and delay planned U.S. tariff increases.

The three main indexes ended the previous session higher

after gaining more than 1% in early trading on Thursday

following optimism that the two sides could cool off their row

before more U.S. tariffs kick in next week.

President Donald Trump said trade talks between the U.S. and

Chinese officials on Thursday went well, and is set to meet

Chinese Vice Premier Liu He at 2:45 p.m. ET. Analysts said equity markets have grown hungry for some sort

of breakthrough in the latest round of negotiations.

"Over the last couple of months, we have seen firms taking a

hit from the uncertainty around trade and markets will be

looking for any clues to remove that uncertainty," said Scott

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

Florida.

"It is still going to be a one step forward, two steps

backward tone with the talks, but there are hopes of a

de-escalation."

Companies with a sizeable exposure to China rose in

premarket trading. Apple Inc AAPL.O was up 1.2%, while

chipmakers Intel Corp INTC.O , Nvidia Corp NVDA.O and

Advanced Micro Devices Inc AMD.O gained about 1.5%.

Wedbush raised its price target on the shares of the iPhone

maker, citing optimism about the company's Apple TV+ video

streaming service. Oil majors Exxon Mobil Corp XOM.N and Chevron Corp CVX.N

rose 1% and 1.2% respectively, as a report of an attack on an

Iranian oil tanker lifted oil prices. O/R

Still, the S&P 500 and Dow Jones indexes were set for their

fourth straight weekly fall after taking a hit from the recently

announced weak economic data and irritants in the U.S.-China

trade war.

At 8:33 a.m. ET, Dow e-minis 1YMcv1 were up 260 points, or

0.98%. S&P 500 e-minis EScv1 were up 29 points, or 0.99% and

Nasdaq 100 e-minis NQcv1 were up 85.5 points, or 1.1%.

Focus now shifts to third-quarter earnings starting next

week as investors brace for the impact of the trade war on

Corporate America.

Analysts are expecting a 3.1% drop in S&P 500 earnings,

marking the first decline since 2016, according to IBES data

from Refinitiv.

Investors are also betting on a third interest rate cut by

the Federal Reserve by the end of the month to battle an

economic downturn in the world's largest economy.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.