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US STOCKS-Wall St set to rise on trade deal relief; business activity data eyed

Published 2020/06/23, 14:37
Updated 2020/06/23, 14:42
© Reuters.
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* Nike rises as brokerages boost price targets

* Spirit AeroSystems falls as it seeks relief from lenders

* Futures up: Dow 1.20%, S&P 1.03%, Nasdaq 0.70%

(Adds comment, details; updates prices)

By Pawel Goraj and Devik Jain

June 23 (Reuters) - Wall Street's main indexes were set to rise on Tuesday as investors took heart from reassurances that the Phase 1 trade agreement with China was intact, while upbeat business activity data from Europe boded well for U.S. surveys due later.

"The China Trade Deal is fully intact," President Donald Trump tweeted late on Monday after White House adviser Peter Navarro sparked confusion by saying the deal was over, roiling risk assets globally and sending S&P stock futures down as much as 1.7%. heightened tensions between Washington and Beijing this year have been a cause for concern, monetary and fiscal support worth trillions of dollars, businesses restarting and encouraging economic data have lifted the benchmark S&P 500 .SPX about 42% higher from its pandemic low hit in March. It is now just about 8% below its Feb. 19 record high.

A boost from technology stocks helped Wall Street's three major indexes close higher on Monday, with the tech-heavy Nasdaq .IXIC registering its fourth record closing high this month.

"There's a lot of money on the sidelines and as the country reopens, as the economy recovers, that money will be forced back in and that's why we have a little bit more room to run here," said Thomas Hayes, managing member at Great Hill Capital LLC in New York.

"And then probably, we start to take a rest towards the end of the summer for a little bit before the economy truly starts to catch up to where the market is."

After European stock markets were boosted by better-than-feared business activity surveys for June, all eyes will be on U.S. manufacturing and services sector PMI numbers, due 9:45 a.m. ET (1345 GMT). 8:12 a.m. ET, Dow e-minis 1YMcv1 were up 311 points, or 1.2%. S&P 500 e-minis EScv1 were up 32 points, or 1.03% and Nasdaq 100 e-minis NQcv1 were up 70.5 points, or 0.7%.

Among premarket movers, Nike Inc (NYSE:NKE) NKE.N rose 2% as brokerages raised their price targets ahead of quarterly results on Thursday.

Translate Bio TBIO.O soared 54% on plans to expand a vaccine collaboration with Sanofi SASY.PA in a deal that could earn the U.S. biotech company more than $2 billion from the French drugmaker. Co's BA.N top supplier Spirit AeroSystems Holdings SPR.N slipped 5.3% after it said it was seeking relief from lenders as its finances were stretched by the COVID-19 pandemic and a 737 MAX production halt. Technology Inc MU.O slipped 0.9% as BMO downgraded the chipmaker's shares to "market perform".

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