US Markets

Wall St indexes to open at record highs on U.S-China trade optimism


Wall Street's three main indexes were set to open at record highs on Monday, buoyed by hopes of a U.S.-China trade deal and an improving domestic economy.

By Arjun Panchadar

Nov 4 (Reuters) - Wall Street's three main indexes were set to open at record highs on Monday, buoyed by hopes of a U.S.-China trade deal and an improving domestic economy.

Washington and Beijing said on Friday they had made progress in defusing an economically damaging trade war, with U.S. officials indicating that a deal could be signed this month.

Adding to the optimism, Commerce Secretary Wilbur Ross said on Sunday licenses for U.S. companies to sell components to China's Huawei Technologies Co would come "very shortly" and that there was no reason a trade deal could not be on track to be signed this month.

"There is growing enthusiasm over a trade deal, as progress is being made in these talks," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"Investors are betting that some sort of a deal is on its way, not a whole deal but something that will at least avoid a recession. And markets can live with that," he added.

Trade sensitive chipmakers including Intel Corp INTC.O, Micron Technology MU.O and Nvidia Corp NVDA.O rose between 0.7% and 2% in premarket trading.

U.S.-listed Chinese stocks such as online games and media provider NetEase Inc NTES.O, internet search provider Baidu Inc BIDU.O and e-commerce firm JD.Com JD.O were also up between 1.6% and 3.6%.

The S&P 500 and Nasdaq index hit record highs in the previous session after data showed U.S. jobs growth slowed less than expected in October, easing concerns about the fallout of the trade war on domestic economy.

A robust third-quarter earnings season has also added to an upbeat mood, with about 76% of the 356 S&P 500 companies that have reported results so far beating profit expectations, according to Refinitiv data.

Companies such as Uber Technologies Inc UBER.N, Qualcomm Inc QCOM.O, Walt Disney Co DIS.N and CVS Health Corp CVS.N are set to report results this week.

Fresh economic data due at 10 a.m. ET is expected to show U.S. factory orders falling 0.5% in September compared to a 0.1% drop in August.

At 8:37 a.m. ET, Dow e-minis 1YMcv1 were up 178 points, or 0.65%. S&P 500 e-minis EScv1 were up 19.25 points, or 0.63% and Nasdaq 100 e-minis NQcv1 were up 65.25 points, or 0.8%.

Under Armour Inc UAA.N slid 14.6% as it lowered its full-year revenue forecast for a second straight time, a day after it confirmed a federal probe related to its accounting practices.

McDonald's Corp MCD.N fell 1.7% after the fast-food giant dismissed Chief Executive Steve Easterbrook over a recent consensual relationship with an employee, which the board determined violated company policy.

U.S.-listed shares of Tesla rival Nio Inc NIO.N jumped 9.2% as it reported a 25% jump in vehicle deliveries in October. With nearly 363,000 shares traded before the bell, it was among the most actively-traded U.S. stocks.

(Reporting by Arjun Panchadar in Bengaluru; Editing by Anil D'Silva)

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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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