US STOCKS-Wall St set for strong 2020 start on China stimulus, trade hopes

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* China cuts banks' reserve ratios again to spur economy
* Data shows U.S. jobless claims fell last week
* Hanesbrands slips after report of Wells Fargo downgrade
* Futures up: Dow 0.58%, S&P 0.60%, Nasdaq 0.84%

(Adds comment; updates prices)
By Manas Mishra
Jan 2 (Reuters) - U.S. stocks were set to start the year on
a strong note on Thursday as fresh stimulus from Beijing to prop
up its slowing economy added to the optimism over easing trade
tensions and an improving global outlook.
All three major U.S. stock indexes ended higher on Tuesday
after President Donald Trump said an initial U.S.-China trade
pact would be signed on Jan. 15. Trump also said he would travel
to Beijing to begin talks on the next phase. Expectations of an initial trade deal, robust U.S. economic
data and a loose monetary policy by some of the world's most
influential central banks had powered a rally on Wall Street in
December.
"Trade continues to be a driver for this market," said Kim
Forrest, chief investment officer at Bokeh Capital Partners in
Pittsburgh.
"We're trying to figure out when news about trade gets baked
in, but talks about Phase 2 shows that this isn't a one and done
sort of thing to just repair the damage of the trade war of last
year."
The benchmark S&P 500 index .SPX signed off on the last
decade with its strongest December since 2010, while the Nasdaq
briefly traded above the 9,000 mark.
China's central bank said on Wednesday it would cut the
amount of cash that all banks must hold as reserves, the eighth
such cut since early 2018, injecting fresh stimulus into the
economy. The decision also lifted stock markets in Asia and
Europe. MKTS/GLOB
At 08:41 a.m. ET, Dow e-minis 1YMcv1 were up 165 points,
or 0.58%. S&P 500 e-minis EScv1 were up 19.25 points, or 0.6%,
and Nasdaq 100 e-minis NQcv1 were up 73.75 points, or 0.84%.
Latest data from the U.S. Labor Department showed that the
number of Americans filing claims for jobless benefits edged
lower last week, a positive signal for the labor market amid
recent signs that new claims may be trending slightly higher.
IHS Markit's final manufacturing Purchasing Managers' Index
(PMI), set to be released at 9:45 a.m. ET, is expected to show a
reading of 49 last month, higher than 48.1 in November. Readings
below 50 denote contraction.
Among premarket movers, Hanesbrands Inc HBI.N slipped 1.8%
after a report that Wells Fargo has downgraded the apparel
maker's shares to "underweight".