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* Easing geopolitical tensions spur risk-on mood
* FAANG stocks rise on positive brokerage comments
* Kohl's slides after downbeat FY earnings forecast
* Futures up: Dow Dow 0.39%, S&P 0.35%, Nasdaq 0.60%
(Updates prices, adds comment)
By Sruthi Shankar
Jan 9 (Reuters) - U.S. stocks were set to open at record
levels on Thursday after the United States and Iran pulled back
from new military action, while firming optimism about a
U.S.-China trade deal added to the upbeat mood.
China's commerce ministry said on Thursday that Vice Premier
Liu He will sign a Phase 1 trade deal in Washington next week,
raising hopes that a prolonged tariff war between the two sides
will come to a close. After a wobbly start in the new year on fears of an all-out
conflict in the Middle East, nerves eased on Wednesday as
Washington and Tehran looked to defuse the crisis after Iran's
retaliatory attack following the killing of a top general.
"While geopolitical risks can trigger bouts of short-term
volatility, investors should not ignore the recent improvements
in selected economic indicators and earnings," strategists at
Eastspring Investments said in a client note.
"Should the nascent recovery in the global economy continue,
further upside in global markets is still possible."
After a better-than-expected private payrolls report on
Wednesday, investors are awaiting Friday's jobs report as well
as fourth-quarter reports. Big U.S. banks will kick off the
quarterly earnings season next week.
Earnings for the S&P 500 companies are expected to drop 0.6%
in their second consecutive decline, according to Refinitiv IBES
data.
At 8:47 a.m. ET, Dow e-minis 1YMcv1 were up 113 points, or
0.39%. S&P 500 e-minis EScv1 were up 11.5 points, or 0.35% and
Nasdaq 100 e-minis NQcv1 were up 53.5 points, or 0.6%.
Apple AAPL.O gained 1.3% after government data showed
iPhone sales in China in December jumped more than 18% year on
year. Meanwhile, Jefferies raised its price target on the stock
by $65 to $350. Jefferies also upgraded Snap Inc SNAP.K to "buy" as it
expects improving user growth in international markets. The
company's shares rose 4%.
Alphabet GOOGL.O , Facebook FB.O and Twitter TWTR.N
rose between 0.8% and 1.7% as Cowen Equity Research raised its
price target on the stocks after the brokerage's survey of U.S.
ad buyers showed upbeat spending in 2020.
Starbucks Corp SBUX.O rose 1.7% after Barclays raised the
stock to "over weight", while Advanced Micro Devices Inc AMD.O
gained 2.2% after Mizuho recommended "buy" on the stock, citing
an improving server market in 2020.
Shares in Kohl's Corp KSS.N slid 7.9% after the department
store operator forecast full-year earnings at the bottom end of
an already lowered target. J C Penney Co Inc JCP.N dropped
2.5% after disappointing same-store sales numbers.