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* Futures up: Dow 0.47%, S&P 0.52%, Nasdaq 0.44%
By Amy Caren Daniel
Futures initially dived after China's finance ministry saidon Thursday it would take necessary counter-measures against thelatest tariffs on $300 billion of Chinese goods. urn:newsml:reuters.com:*:nB9N24U017
But reports that China hoped the United States can meet ithalfway on trade issues led to a turnaround in shares.
"It doesn't matter where we are right now. The number ofvariables affecting this market are increasing," said AndreBakhos, managing director at New Vines Capital LLC inBernardsville, New Jersey.
Walmart IncWMT.N shares rose 5.5% after the retailerreported second-quarter U.S. comparable sales that beatestimates and boosted its earnings forecast for the year. urn:newsml:reuters.com:*:nL2N25B082
In contrast, Dow component Cisco Systems IncCSCO.O plunged 9.6% after the network gearmaker blamed the bruisingtrade war for poor quarterly forecasts. urn:newsml:reuters.com:*:nL4N25A4WK
The network gearmaker said prices of some items sold by theretailer have climbed due to tariffs on Chinese imports, but itis managing that pressure by negotiating with suppliers andsourcing from alternate supply bases.
The blue-chip Dow index posted its biggest one-day pointdrop since October on Wednesday as recession fears gripped themarket after the U.S. Treasury yield curve inverted for thefirst time in 12 years. US/
Trade worries have plagued financial markets for at least ayear fuelling fears of recession, and traders have raised theirbets on three rate cuts this year including one in September tosustain a decade-long bull market run on Wall Street.
The benchmark S&P 500 .SPX is now 6.6% away from itsall-time high hit in July.
At 7:56 a.m. ET, Dow e-minis 1YMcv1 were up 119 points, or0.47%. S&P 500 e-minis EScv1 were up 14.75 points, or 0.52%and Nasdaq 100 e-minis NQcv1 were up 33 points, or 0.44%.
In a heavy day for economic data, investors will be watchingout for the Commerce Department's report, due at 8:30 a.m. ET,which will likely show retail sales rose 0.3% in July after a0.4% gain a month earlier.
The U.S. Federal Reserve's industrial production data, dueat 9:15 a.m. ET, is expected to rise 0.1%, compared to June'sunchanged industrial output. (Reporting by Amy Caren Daniel in Bengaluru) ((Amy.CarenDaniel@thomsonreuters.com ; within U.S.+1-646-223-8780; outside U.S. +91 80 6749 9250 ; ReutersMessaging: Amy.CarenDaniel.email@example.com))