Futures rise on signs of cooling trade tensions

07 Jun, 2018 - 12:06 0 Views
Futures rise on signs of cooling trade tensions

eBusiness Weekly

U.S. stock index futures rose on Wednesday, with Wall Street’s renewed interest in technology stocks poised to push the Nasdaq to another record high amid signs of easing trade tensions.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 29, 2018. REUTERS/Brendan McDermid

China’s ZTE Corp has signed an agreement in principle that would lift a U.S. ban, allowing the telecoms equipment maker to buy from U.S. suppliers and get back into business, Reuters reported.

Shares of Qualcomm rose 1.3 percent in light premarket trade and Intel Corp rose 0.8 percent while smaller optical components makers including Acacia Communications gained 3.5 percent and Finisar Corp was up 2 percent.

U.S. officials were weighing an offer by China to import an extra $70 billion of American goods over a year as Beijing tries to defuse a potential trade war between the world’s two largest economies, according to sources.

At 7:29 a.m. ET, Dow e-minis 1YMc1 were up 109 points, or 0.44 percent. S&P 500 e-minis ESc1 were up 5.75 points, or 0.21 percent and Nasdaq 100 e-minis NQc1 were up 10.25 points, or 0.14 percent.

The Nasdaq closed at a record high for the second day in a row on Tuesday with help from Apple, Amazon and other tech giants even as the S&P 500 posted only slight gains.

U.S. President Donald Trump is due to attend the G7 summit in Canada this week, where leaders were likely to discuss the global economy and concerns about U.S. trade policy.

Trump last week imposed tariffs of 25 percent on steel and 10 percent on aluminum from Canada, the EU and Mexico, to which Mexico retaliated by putting tariffs on American products ranging from steel to pork and bourbon.

L Brands rose 5.9 percent after the Victoria’s Secret owner reported a 10 percent jump in sales in May.

UnitedHealth Group rose 0.88 percent following a 20 percent hike in quarterly dividend and the health insurer renewed its buyback program to purchase over 10 percent of its outstanding shares.

Signet Jewelers rose 4.2 percent after reporting a surprise profit and higher-than-expected revenue in the first quarter. – Reuters

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