US Markets

Wall Street eyes higher open on trade optimism; Boeing weighs

Credit: REUTERS/BRENDAN MCDERMID

Wall Street looked set to start the week on an upbeat note on Monday on fresh signs of progress in a long-awaited resolution to the U.S.-China trade war, but a fall in Boeing's shares capped early gains.

By Shreyashi Sanyal

Oct 21 (Reuters) - Wall Street looked set to start the week on an upbeat note on Monday on fresh signs of progress in a long-awaited resolution to the U.S.-China trade war, but a fall in Boeing's shares capped early gains.

White House adviser Larry Kudlow said in an interview to Fox Business that tariffs scheduled for December could be withdrawn if trade negotiations continue to go well.

His comments added to optimism from positive remarks by Beijing and Washington late last week indicating that a trade deal might be in the offing.

U.S. chipmakers with a large exposure to China rose in premarket trading, with Advanced Micro Devices Inc AMD.O, Nvidia Corp NVDA.O and Micron Technology Inc MU.O gaining between 1% and 2%.

"Any kind of positive development on trade just gets people a little excited, although it is too optimistic to believe that they will reach a whole trade deal as early as mid-November," said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York.

Microsoft Corp MSFT.O rose 0.6% after German business software group SAP SAPG.DE said it had signed a three-year cloud partnership with the company.

However, Boeing Co BA.N was set to extend a slide from the previous session as two brokerages downgraded the stock after leaked messages from a former test pilot showed he might have unintentionally misled regulators about the safety of the grounded 737 MAX jet.

Shares of the planemaker fell 2.5%.

Wall Street has recovered after a rough start to the month on signs of progress in talks between the world's two largest economies and as the third-quarter earnings season kicked off on a strong footing.

The benchmark S&P 500 .SPX index ended Friday with its second weekly gain, while the Nasdaq .IXIC rose for three weeks in a row.

At 8:58 a.m. ET, Dow e-minis 1YMcv1 were up 44 points, or 0.16%. S&P 500 e-minis EScv1 were up 11.75 points, or 0.39% and Nasdaq 100 e-minis NQcv1 were up 36.75 points, or 0.47%.

Investors are now gearing up for earnings reports from tech heavyweights Microsoft Corp MSFT.O and Intel Corp INTC.O this week.

Analysts have projected the first earnings contraction since 2016 for S&P 500 companies, but of the 73 companies that have reported results so far, nearly 84% have topped analysts' estimates.

Oilfield services provider Halliburton Co HAL.N dropped 1.5% after reporting a 32% slump in third-quarter profit, hit by a slowdown in shale drilling in North America, its biggest market.

Coty Inc COTY.N jumped 11.2% after the cosmetics maker said it was planning to sell its professional beauty business that houses brands such as Wella and OPI.

Drug distributors Cardinal Health Inc CAH.N and McKesson Corp MCK.N pared some losses after the companies, along with AmerisourceBergen Corp ABC.N and Teva Pharmaceutical Industries TEVA.TA, reached a settlement with two Ohio counties related to the opioid crisis.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)

((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780))

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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