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US STOCKS-Futures up on progress in U.S.-China trade talks

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* Futures up: Dow 0.08 pct, S&P 0.06 pct, Nasdaq 0.06 pct

By Amy Caren Daniel

Hopes of a trade deal ahead of a March 1 deadline has helpedthe trade-sensitive industrial sector .SPLRCI gain nearly 16percent this year, making it the best performing S&P sector.

But the optimism was clouded by data on Thursday which showed retail sales in December suffered their biggest drop inmore than nine years, resulting in the S&P 500 index .SPX breaking its four-day winning streak.

Still, the benchmark held above its 200-day moving average,a key technical level, for the third straight session.

"We're seeing progress in trade talks between the U.S. andChina, another shutdown has been averted and the Fed has becomeconsiderably less hawkish," Craig Erlam, senior market analystat Oanda in London, wrote in a note.

"I don't see reason to panic over one piece of bad data."

Another concern for markets was a threat by President DonaldTrump to declare a national emergency in an attempt to fund hisU.S.-Mexico border wall without congressional approval.

Still, he agreed to sign the bill that lacked money for hiswall, but prevents another damaging government shutdown.

At 7:01 a.m. ET, Dow e-minis 1YMc1 were up 21 points, or0.08 percent. S&P 500 e-minis ESc1 were up 1.75 points, or0.06 percent and Nasdaq 100 e-minis NQc1 were up 4.5 points,or 0.06 percent.

PepsiCo IncPEP.O fell 0.3 percent after the soda-makerforecast a surprise drop in full-year profit hit in part by astronger dollar.

Rival Coca-Cola CoKO.N , edged 0.4 percent higher. Companyon Thursday also blamed a strong dollar for its weak forecast.

Nvidia CorpNVDA.O rose 5.4 percent after the chipmakerforecast sales for its current fiscal year above expectations.

Economic data on tap includes industrial production due at9:15 am ET, which is expected to have risen 0.1 percent inJanuary, compared with December's reading of 0.3 percent.

In another report, import prices in January are likely tohave declined 0.1 percent, after dropping 1.0 percent inDecember, due at 8:30 am ET.

The University of Michigan U.S. February consumer sentimentindex is expected at 10 a.m. ET. (Reporting by Amy Caren Daniel and Shreyashi Sanyal inBengaluru; Editing by Arun Koyyur) ((Amy.CarenDaniel@thomsonreuters.com ; within U.S.+1-646-223-8780; outside U.S. +91 80 6749 9250 ; ReutersMessaging: Amy.CarenDaniel.thomsonreuters.com@reuters.net))


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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