US STOCKS-Futures gain as China fuels trade deal optimism

  • Reuters
  • Stock Market News
US STOCKS-Futures gain as China fuels trade deal optimism
Credit: © Reuters.

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* Futures up: Dow 0.30%, S&P 0.19%, Nasdaq 0.27%

By Arjun Panchadar

Nov 18 (Reuters) - U.S. stock index futures pointed to another session of gains on Monday, as a report out of China added to optimism over a trade deal and the country's central bank indicated willingness to step in to prop up a slowing economy.

Washington and Beijing had held "constructive" trade talks over the weekend, China's state media said, just days after White House economic adviser Larry Kudlow indicated that the world's top two economies were close to a deal. of a resolution to the 16-month trade dispute that has roiled financial markets and throttled global growth have powered Wall Street's three indexes to multiple record highs this month.

Chipmakers that have a large exposure to China rose in premarket trading, with Nvidia Corp NVDA.O , Micron Technology MU.O and Advanced Micro Devices Inc AMD.O up between 0.4% and 1%.

U.S.-listed Chinese stocks including Alibaba (NYSE: BABA ) Group Holding Ltd BABA.N and Baidu Inc BIDU.O rose between 0.5% and 1%.

Aiding sentiment was the unexpected cut by China to a closely watched lending rate for the first time in more than four years, as the central bank looks to counter a slowdown.

At 7:28 a.m. ET, Dow e-minis 1YMcv1 were up 85 points, or 0.3%. S&P 500 e-minis EScv1 were up 6 points, or 0.19% and Nasdaq 100 e-minis NQcv1 were up 22.25 points, or 0.27%.

Attention now turns to minutes from the Federal Reserve's latest policy meeting, where it cut interest rates for the third time this year. The minutes are due to be released on Wednesday.

Also on the radar are earnings from U.S. retailers such as Home Depot Inc (NYSE: HD ) HD.N , Kohl's Corp KSS.N and Target Corp (NYSE: TGT ) TGT.N following a stronger-than-expected corporate earnings season to-date that has aided the rally in stocks.

Shares of HP Inc (NYSE: HPQ ) HPQ.N fell 2.1% after the company rebuffed a $33.5 billion offer from Xerox Corp (NYSE: XRX ) XRX.N and said it was open to exploring a bid for the latter. Inc SPLK.O gained 3.4% after Morgan Stanley (NYSE: MS ) upgraded the data analytics software maker's stock to "overweight" from "equal-weight".

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