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Wall Street set for higher open as U.S.-China trade talks resume

Reuters 

By Amy Caren Daniel

(Reuters) - Wall Street's main indexes were set to rise at open on Monday as the latest round of trade talks between the world's largest economies began in Beijing, while U.S. lawmakers attempted to hammer out a deal to avoid another government shutdown.

struck an upbeat note on the talks and the exchange rose more than 1 percent after a week-long Lunar New Year holiday, but a U.S. Navy mission through the disputed Sea weighed on sentiment.

Shares of Boeing Inc, the largest U.S. exporter to China, gained 1.1 percent in premarket trading, while climbed 0.7 percent.

"These trade talks are being viewed as a positive. There is still a lot of uncertainty but there's this pattern of markets embracing good a little bit more than bad news," said Scott Brown, at in St. Petersburg,

Adding to the positive tone, told that may still meet with his Chinese counterpart in the near future. However, Trump last week said he did not plan to meet with Xi before the March.

The latest trade talks come against the backdrop of last month's discussions ending without a deal and the top declaring that a lot more work needed to be done.

"The market is reacting to shifting but there won't be a significant move until we get a resolution to trade," Brown said.

In Washington, talks on border security funding collapsed on Sunday after Democratic and Republican lawmakers clashed over immigrant detention policy, but a special negotiating panel is aiming to reach a deal by Monday.

Trade uncertainty and worries of a global economic slowdown capped gains on the S&P 500, which ended last week flat, still the benchmark index is about 15 percent above its December lows, helped in part by a dovish Federal Reserve and largely upbeat earnings reports.

The fourth-quarter earnings season has entered the home stretch, with 71.5 percent of the S&P 500 companies that have reported results topping profit estimates, according to IBES data from Refinitiv.

But analysts' estimates for first-quarter earnings for S&P companies have turned negative. They expect a decline of 0.1 percent from a year earlier, which would be the first quarterly profit fall for the group since 2016.

At 8:20 a.m. ET, Dow were up 117 points, or 0.47 percent. S&P 500 were up 11.25 points, or 0.42 percent and Nasdaq 100 were up 39.75 points, or 0.57 percent.

Some of the reporting this week include Coca-Cola Co, and Nvidia Corp.

rose 2.4 percent after brokerage upgraded the stock, calling its electric vehicle penetration "underappreciated".

gained 3.3 percent after analysts were upbeat about a strong start to the video-game publisher's newly launched game.

(Reporting by and in Bengaluru; Editing by and Saumyadeb Chakrabarty)

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

First Published: Mon, February 11 2019. 19:19 IST
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