US Markets

Wall St set to resume record run on trade deal optimism

Credit: REUTERS/BRENDAN MCDERMID

Wall Street's main indexes were set to hit record highs on Thursday, boosted by signs of progress in U.S.-China trade relations and a fresh batch of largely upbeat earnings reports.

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Qualcomm gains on upbeat forecast

Trade-sensitive chipmakers, industrials rise

Ralph Lauren jumps on profit beat

Roku plunges after wider loss

Futures up: Dow 0.55%, S&P 500 0.37%, Nasdaq 0.44%

Adds comment, updates market action

By Arjun Panchadar

Nov 7 (Reuters) - Wall Street's main indexes were set to hit record highs on Thursday, boosted by signs of progress in U.S.-China trade relations and a fresh batch of largely upbeat earnings reports.

The benchmark S&P 500 index .SPX is eyeing its fifth straight week of increases, while the tech-heavy Nasdaq .IXIC is set to log six weeks of gains.

China said on Thursday that it had agreed with the United States to remove tariffs in phases, while the state-owned Xinhua News Agency said Beijing was also considering removing restrictions on poultry imports.

"This is fuelling optimism that a trade deal will be solidified at some point," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.

"It removes a veil of uncertainty and gives the market a green light for a risk-on path."

Trade-sensitive industrials 3M Co MMM.N and Caterpillar Inc CAT.N rose over 1% in premarket trading. Chipmakers with a sizeable exposure to China, including Intel Corp INTC.O, Micron Technology MU.O and Nvidia Corp NVDA.O, were up between 1% and 1.7%.

Also supporting tech stocks was a 5.6% gain in Qualcomm Inc shares QCOM.O after the chipmaker forecast current-quarter profit above analysts' estimates.

Nearly three-quarters of the 383 S&P 500 companies that have reported results so far have beaten profit expectations, according to IBES data from Refinitiv.

At 8:46 a.m. ET, Dow e-minis 1YMcv1 were up 152 points, or 0.55%. S&P 500 e-minis EScv1 were up 11.5 points, or 0.37% and Nasdaq 100 e-minis NQcv1 were up 36 points, or 0.44%.

Ralph Lauren Corp RL.N jumped 9.6% after it topped second-quarter profit expectations, driven by tighter control on expenses and strong demand for its Polo shirts and tweed jackets in China and Europe.

Expedia Group Inc EXPE.O dropped 14% as the online travel booking company missed quarterly profit estimates.

Roku Inc ROKU.O plunged 15% after posting a wider net loss in the third quarter, as it spent more to attract subscribers to its video streaming platform.

Twitter Inc TWTR.N fell 1.6% after Evercore ISI downgraded the stock to "underperform" from "in-line".

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

((Arjun.Panchadar@thomsonreuters.com; within U.S. +1-646-223-8780; outside U.S. +918067492767;))

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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