Futures Perk Up After North Korea Extends Olive Branch; Trade War Faces Resistance

US stock futures were adding to already sizable overnight gains into Monday's open amid signs of a truce between the US and North Korea, and pushback from lawmakers and business leaders towards potential steel and aluminium tariffs that risk igniting a global trade war. Dow futures were indicating a 120 point gain at the cash open led by gains in industrial and energy shares.

Overseas markets were already gaining ground prior to the North Korean headlines with Monday's US rally spilling into Asia. The uptrade was amplified by backpedalling from Japan's central bank chief regarding the impending exit from quantitative easing and indications that the yen's recent run higher may be running out of steam. The buoyant mood permeated European bourses which were significantly higher, led by gains in the materials sector.

In related markets, oil and gold futures were strengthening with Tuesday's gains tied to a weaker dollar, while Treasury yields are higher in respect to easing geopolitical and domestic risks.

In earnings news, Target ( TGT ) shares were lower pre-market after reporting a miss on Q4 earnings and EPS guidance that was on the low end of expectations. After the close, Urban Outfitters ( URBN ), Ross Stores ( ROST ) and H&R Block ( HRB ) will report their latest quarterly results.

Tuesday's economic calendar is light with only January factory orders (expected -1.2%) at 10 am ET. Fed governor Lael Brainard and Dallas Fed president Rob Kaplan are speaking after the close.

-Dow Jones Industrial up 0.57%

-S&P 500 futures up 0.40%

-Nasdaq 100 futures up 0.59%


Nikkei up 1.79%

Hang Seng up 2.09%

Shanghai Composite up 1.02%

FTSE-100 up 0.79%

DAX-30 up 0.93%


(+) Large cap tech: Higher

(+) Chip stocks: Higher

(+) Software stocks: Higher

(+) Hardware stocks: Higher

(+) Internet stocks: Higher

(+) Oil stocks: Higher

(+) Biotech stocks: Higher

(+/-) Drug stocks: Mixed

(+) Financial stocks: Higher

(-) Retail stocks: Lower

(+) Industrial stocks: Higher

(+/-) Airlines: Flat

(+) Autos: Higher


(+) CLBS (+29.62%) Acquires exclusive rights to late stage cell therapy program for treatment of refractory angina

(+) AMRC (+13.77%) Q4 EPS increases from year ago, revenue tops estimates, issues upbeat FY18 guidance

(+) BTE (+12.00%) Swings to a profit in Q4, revenue beats expectations

(+) CRHM (+3.45%) Reported 25% increase in Q4 revenue


(-) GLYC (-17.40%) Q4 loss widens from year ago

(-) ASNA (-15.29%) Q2 sales down, reports wider loss, guides comparable sales for Q3 below expectations

(-) MRNS (-10.86%) Reported wider-than-expected Q4 loss

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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