U.S. stock futures climbed early on Wednesday as investors took cheer from a report that Beijing and Washington are still working toward a phase one trade deal, offsetting fears of a delay sparked by President Donald Trump’s comments on Tuesday.
What are stocks doing?
Dow Jones Industrial Average futures
YMZ19, +0.58%
rose 156 points, or 0.6%, to 27,643, while S&P 500 futures
ESZ19, +0.50%
climbed 15.15 points, or 0.5%, to 3,106.25. Nasdaq-100
NQZ19, +0.64%
futures rose 52.75 points, or 0.6%, to 8,304.
On Tuesday, the Dow Jones Industrial Average
DJIA, -1.01%
ended 280.23 points lower, down 1%, at 27,502.81, for its biggest one-day point and percentage drop since October 8. The S&P 500 index
SPX, -0.66%
finished with a loss of 20.67 points, or 0.7%, at 3,093.20, while the Nasdaq Composite Index
COMP, -0.55%
retreated 47.34 points, or 0.6%, ending at 8,520.64.
What’s driving the market?
Stocks climbed in Europe and were set to rebound in the U.S. after Bloomberg reported, citing sources, that despite signs of fresh tensions, Beijing and Washington were making progress toward a phase one trade deal.
Those sources said that a phase one agreement would be completed before another set of China tariffs is set to kick in on December 15. Stocks slumped on Tuesday after U.S. President Donald Trump said at a news conference in London, where he was attending a NATO meeting, that he had “no deadline” when it comes to concluding the two-year-old U.S.-China trade talks.
“It still baffles me that investors hang on every Trump statement and tweet,” said Craig Erlam, an analyst with OANDA Europe. “His trade deal optimism changes on a near-daily basis and yet investors are very sensitive to it. It’s probably a reflection of the relative lack of other talking points.”
Read: What a ‘no-deal’ U.S.-China trade scenario would mean for stocks and bonds
The sources told Bloomberg that Trump’s comments shouldn’t be read as an indication negotiations were at an impasse, nor would U.S. legislation aimed at supporting Hong Kong protesters and ethnic Muslims in the far west of China affect a deal.
Investors will be waiting for a fresh batch of U.S. economic data, including ADP employment private-sector payrolls at 8:15 a.m. Eastern Time. The Markit services sector purchasing managers index at 9:45 a.m. and the Institute for Supply Management’s non-manufacturing index for November, due at 10 a.m, will give investors clues about the service sector of the U.S. economy.
At 10 a.m. Eastern, Federal Reserve Vice Chairman Randal Quarles will testify before the House Financial Services Committee. The hearing is about banking supervision, not monetary policy.
What stocks are in focus?
Shares of Tesla Inc.
TSLA, +0.40%
moved up in premarket trading after an analyst upgrade. Citi analysts said shares were likely to hit $222, up from $191, but that still implies a hefty decline for the stock.
G-111 Apparel Group Ltd.
GIII, -1.49%
shares fell before hours after the owner of fashion brands like Calvin Klein missed sales expectations and lowered its guidance. The company said tariffs were biting into its business.
Shares of Campbell’s Soup
CPB, +0.93%
slid 2.5% after the company reported earnings that were weaker than a year ago and cut its 2020 sales growth guidance.
Investors will also be watching for third-quarter results from Restoration Hardware
RH, +0.32%
, Slack Technologies, Inc.
WORK, +0.27%
, and H&R Block Inc.,
HRB, -1.95%
among others.
What are other markets doing?
The yield on the 10-year U.S. Treasury note
TMUBMUSD10Y, +1.80%
ticked up three basis points to 1.74%.
In commodities markets, the price of a barrel of West Texas Intermediate crude oil
CL00, +1.82%
edged up 1.60% to $57.
Gold for February delivery
GCG20, -0.13%
fell 3.30 to $1,474.90.
The U.S. dollar edged down fractionally against a basket of its peers.
European stocks were higher, with the STOXX Europe
SXXP, +1.05%
up a little more than 4 points, 1%, to 402.76.
In Asia overnight, the Hang Seng fell 328 points, 1.3%, and the China CSI 300 ticked down 1.3 points to 3,849.82.
Related: Don’t get so excited, this economist says — the trade news isn’t that good
Source : MTV
