Wall Street Heads For Higher Open as China's Trade Concessions Trigger Risk Rally

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US stock futures were indicated to open significantly higher Tuesday as trade concessions by China diffused some of Wall Street's trade war jitters and fueled a risk rally across Europe and the US.

Gains were amplified by inflation data released at 8:30 am ET. Wholesale prices were up by just 0.1% in November while prices for items other than food and fuel were higher by 0.3%. While both were above expectations, on an annual basis, the nominal Producer Price Index rose 2.5% from 2.9%, and the core was only slightly higher at 2.7% from 2.6%.

Overnight, China's vice premier discussed future negotiations with Treasury Secretary Steven Mnuchin, followed Tuesday morning by reports that Beijing was moving forward with lowering tariffs on imported US vehicles despite the continued detention of a Chinese executive in Canada. As a result, Dow futures were set to open more than 300 points higher.

Oil futures were also contributing to the buoyant tone on Wall Street with Brent crude poking above $60 per barrel despite Russia's energy minister saying they will cut production by a much less-than-expected 50,000-60,000 barrels per day compared with expectations of a cut of 228,000 bpd. Both Brent crude and West Texas intermediate crude futures are higher by more than 1%.

Bourses across Europe were also trading with outsized gains as upbeat trade-related headlines overshadowed a drop in the German ZEW index measuring current conditions and reports that EU leaders will not accommodate UK Prime Minister Theresa May's attempts to modify the current Brexit deal. May's announcement to delay the Parliament vote scheduled originally for Tuesday sent sterling spiralling lower with the currency now trading more than just 0.30% higher against the dollar.

-Dow Jones Industrial up 1.22%

-S&P 500 futures up 1.15%

-Nasdaq 100 futures up 1.44%


Nikkei down 0.34%

Hang Seng up 0.07%

Shanghai Composite up 0.37%

FTSE-100 up 2.01%

DAX-30 up 2.29%


(+) Large cap tech: Higher

(+) Chip stocks: Higher

(+) Software stocks: Higher

(+) Hardware stocks: Higher

(+) Internet stocks: Higher

(+) Oil stocks: Higher

(+) Biotech stocks: Higher

(+) Drug stocks: Higher

(+) Financial stocks: Higher

(+) Retail stocks: Higher

(+) Industrial stocks: Higher

(+) Airlines: Higher

(+) Autos: Higher


(+) ENTX (+30.26%) Entered into strategic partnership with Amgen ( AMGN )

(+) DSW (+14.35%) Reported better-than-expected Q3 EPS and sales, raised FY18 guidance

(+) ASNA (+12.82%) Beat Q1 revenue and profit expectations


(-) SEAC (-24.16%) Beat Q3 revenue estimates but lowered Q4, FY19 sales guidance

(-) SFIX (-19.56%) Higher expenses overshadows Q1 EPS beat

(-) FRAN (-11.11%) Swings to a loss, comparable sales drop

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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