By Amy Caren Daniel
(Reuters) - Wall Street was set to open higher on Tuesday, buoyed by a tentative deal reached by U.S. lawmakers to avoid another partial government shutdown and after the United States and China expressed optimism about the ongoing trade talks.
"What investors are taking from this is that the government stays open, whether or not Trump signs on the deal is secondary," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"There is a lot of optimism around the trade talks and hopes for some kind of a deal in the making."
Trade-sensitive industrial bellwethers rose in premarket trading. Boeing Inc and Caterpillar Inc were both up nearly 1 percent each, while chipmakers, which get a huge chunk of their revenue from China, also gained.
Trade war topped the list of biggest tail risks for the ninth straight month, followed by a slowdown in China, according to Bank of America Merrill Lynch's February survey.
Optimism on trade, a largely upbeat fourth-quarter earnings season and a dovish Federal Reserve have now put the S&P 500 index just 8 percent away from its Sept. 20 record closing high.
About 71 percent of the S&P companies that have posted earnings have topped expectations, according to IBES data from Refinitiv. But analysts' estimates for first-quarter earnings have turned negative for the first time since 2016.
Gilead Sciences Inc fell 3.4 percent after a late-stage study of its drug to treat a progressive fatty liver disease failed to meet its main goal.
Economic data on tap includes the JOLTS job openings numbers for December due at 10 a.m. ET. The numbers are forecast to have risen to 6.900 million from 6.888 million in November.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)