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Wall Street poised for gains as trade concerns take a back seat

Reuters 

By Sruthi Shankar

(Reuters) - U.S. stock futures pointed to opening gains for Wall Street on Monday after healthy U.S. jobs data last week helped investors look past rising trade tensions between the and

Chipmakers and rose more than 1.5 percent in premarket trading, as trade fears eased. A host of Chinese companies with listings on U.S. bourses, Alibaba, and also climbed after recommendations on the stocks.

The and engaged in tit-for-tat tariffs on Friday, both countries imposing duties worth $34 billion on each others' goods. But the benchmark closed up 0.84 percent on Friday as many analysts said the move was already priced in, but warned that further escalation could dent the appetite for stocks.

China's securities regulator said on Sunday it plans to ease restrictions on foreign investment in stocks listed on the or exchanges to attract more foreign capital and support the economy.

The sentiment was largely upbeat after Friday's U.S. payrolls report showed tame wages and more people looking for work, boosting optimism that the Federal Reserve would stay on a path of gradual interest rate increases.

"Last Friday's gains managed to put a positive patina on what was otherwise a rather unimpressive week for equity investors," Peter Kenney, at Global Markets Advisory Group, in New York, wrote in a note.

"That tone could serve investors well this week as we launch into Q2 earnings season."

At 8:33 a.m. ET, Dow were up 112 points, or 0.46 percent. were up 10.25 points, or 0.37 percent and were up 35.75 points, or 0.49 percent.

All eyes will turn to second-quarter earnings reports, with banks JPMorgan, and scheduled to report on Friday.

companies are expected to report 21 percent growth in earnings per share for the June quarter, according to I/B/E/S. But focus will be on any warnings companies might give about the impact of trade tariffs.

was up 0.9 percent after automotive website Electrek reported the company hiked prices of its Model X and S cars by over $20,000 in due to tariffs.

jumped 10.6 percent after a Recode report that the was looking for a buyer.

(Reporting by in Bengaluru; Editing by Shounak Dasgupta)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 09 2018. 18:17 IST
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