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US STOCKS-Futures rise on U.S.-China trade optimism

Published 08/30/2019, 08:05 PM
Updated 08/30/2019, 08:10 PM
US STOCKS-Futures rise on U.S.-China trade optimism
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* Futures up: Dow 0.49%, S&P 0.50%, Nasdaq 0.51%

By Akanksha Rana
Aug 30 (Reuters) - U.S. stocks index futures rose on Friday,
as investors took comfort from signals that the United States
and China will resume trade talks.
Wall Street's main indexes are on track to wrap up the week
with the biggest gains since June after coming under immense
selling pressure for much of the month due to escalating trade
tensions and fears of a looming recession.
The benchmark S&P 500 .SPX index is has fallen 3.4% from
its record high hit in late July. Markets will be shut for the
Labor Day holiday on Monday.
China's Foreign Ministry said trade negotiating teams from
Washington and Beijing are maintaining effective communication,
a day after both sides discussed the next round of in-person
negotiations in September.
Shares of trade-sensitive companies including Apple Inc
AAPL.O and Caterpillar Inc CAT.N were up nearly 1% in
premarket trading.
Investors are also bracing for a new round of U.S. tariffs
on some Chinese goods that would come into effect on Sunday.

A report from the Commerce Department due at 08:30 am ET
(1230 GMT) is expected to show that personal consumption
expenditure (PCE) index gained 0.5% in July after a 0.3% rise in
the month before.
The core PCE data, the Federal Reserve's preferred measure
of inflation, is expected to be unchanged for the month.
The inflation report will be followed by the monthly jobs
report and manufacturing data next week that would offer more
clarity on the chances of another interest rate cut.
At 7:31 a.m. ET, the Dow e-minis 1YMcv1 were up 128
points, or 0.49%. The S&P 500 e-minis EScv1 were up 14.5
points, or 0.5% and the Nasdaq 100 e-minis NQcv1 were up 39.5
points, or 0.51%.
Ulta Beauty Inc ULTA.O lost a quarter of its value and was
the biggest loser among the S&P 500 stocks after the cosmetics
company cut its full-year profit forecast.
Dell Technologies Inc DELL.N jumped 9.7% as the PC maker
beat analysts' estimates for profit, aided by higher demand for
desktops as well as a focus on more profitable contracts within
its server unit in China. Shares of Marvell Technology Group Ltd MRVL.O fell 5%
after it forecast third-quarter revenue below estimates, as a
ban on selling components to Chinese telecommunications giant
Huawei Technologies Co Ltd HWT.UL hurt the U.S. chipmaker.

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