Correction: Wall Street Stock Futures Rally as 'Productive' Trade Talks Led to Tariff Delay

(Correction to fourth paragraph. GE sold its biopharma business to Danaher Corp for $21.4 billion. A prior version incorrectly stated Danaher was sold to GE. A correct version follows.)

US stock futures were gaining ground Monday as positive developments on the US-China trade front fueled investors' appetite for risk. On Sunday, US President Donald Trump said he would delay the March 1 deadline for harsher tariffs against China, sending the Shanghai stock index skyrocketing to its highest level in eight months and driving S&P 500 futures over 2,800.

High level trade negotiations in Washington last week concluded with Trump calling the talks "productive," adding that the US made "substantial progress...on important structural issues." As a result, the president said he would delay the imposition of 25% tariffs on Chinese goods ahead of another meeting with Chinese president Xi Jinping in Florida later this month.

The rally originating in Asia spilled into European markets, although gains were muted by strength in the euro and more political turmoil in the UK stemming from the lack of a Brexit deal.

In corporate news, shares of General Electric ( GE ) were significantly higher in pre-market trade after the conglomerate announced the sale of its biopharma business to Danaher Corp. for $21.4 billion.

In other acquisition news, Barrick Gold ( GOLD ) offered to buy Newmont Mining ( NEM ) for $18 billion in stock.

Data released at 8:30 am ET resulted in a knee-jerk move higher in stock futures after the Chicago Fed national activity index fell to negative 0.43 in January from a downward revised 0.05 the month prior (originally reported as 0.27), providing the Fed additional ammunition to stay to the sidelines.

On Monday's economic calendar , December wholesale trade data will be announced at 10 am ET followed at 10:30 am ET by the Dallas Fed manufacturing index.

In related markets, the risk-on trade has pushed Treasury yields lower with the 10-year note 2 basis points cheaper at 2.679%. Oil futures are under heavy selling pressure after President Trump complained that oil prices were too high. West Texas intermediate is down 2.5% to its lowest level in five days.

-Dow Jones Industrial up 0.68%

-S&P 500 futures up 0.56%

-Nasdaq 100 futures up 0.81%


Nikkei up 0.48%

Hang Seng up 0.50%

Shanghai Composite up 5.60%

FTSE-100 down 0.01%

DAX-30 up 0.60%


(+) Large cap tech: Higher

(+) Chip stocks: Higher

(+) Software stocks: Higher

(+) Hardware stocks: Higher

(+) Internet stocks: Higher

(-) Oil stocks: Lower

(+/-) Biotech stocks: Mixed

(+) Drug stocks: Higher

(+) Financial stocks: Higher

(+) Retail stocks: Higher

(+) Industrial stocks: Higher

(+) Airlines: Higher

(+) Autos: Higher


(+) ONCE (+120.71%) To be acquired by Roche Holdings for $114.50 per share

(+) CMTA (+75.60%) To be acquired by Ipsen for approximately $1.3 billion

(+) TTNP (+74.47%) Announce a partnership with Alliance Rx Walgreen's Prime ( WBA ) to expand access to Probuphine

(+) FENG (+41.11%) Will sell 32% stake in Particle for $448 million, made strategic investment in Tadu


(-) MLNT (-14.37%) Closed initial $75 million Vatera convertible loan funding, named John Johnson as CEO

(-) MDR (-8.01%) Reports surprise loss, misses revenue estimates

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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