US STOCKS-Wall St set to rise on trade optimism, progress to avert govt shutdown

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February 11, 2019
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US STOCKS-Wall St set to rise on trade optimism, progress to avert govt shutdown

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* Caterpillar, Boeing rise on trade talk optimism

* Gilead falls after drug fails late-stage study

* Futures up: Dow 0.78 pct, S&P 0.68 pct, Nasdaq 0.79 pct (Adds comments, updates prices)

By Amy Caren Daniel

Feb 12 (Reuters) – Wall Street was set to open higher onTuesday, buoyed by a tentative deal reached by U.S. lawmakers toavoid another partial government shutdown and after the UnitedStates and China expressed optimism about the ongoing tradetalks.

However, it was unclear if President Donald Trump wouldembrace the deal as congressional aides said it did not containthe $5.7 billion he wants for a border wall.*:nL1N2060IA

“What investors are taking from this is that the governmentstays open, whether or not Trump signs on the deal issecondary,” said Peter Cardillo, chief market economist atSpartan Capital Securities in New York.

“There is a lot of optimism around the trade talks and hopesfor some kind of a deal in the making.”

The U.S.-China talks resumed on Monday as both sides attemptto strike a deal before the March 1 deadline, when additionalU.S. tariffs on Chinese imports will come into force.

U.S. Trade Representative Robert Lighthizer arrived inBeijing on Tuesday, ahead of high-level talks scheduled laterthis week.*:nL3N2072YK

Trade-sensitive industrial bellwethers rose in premarkettrading. Boeing IncBA.N and Caterpillar IncCAT.N were bothup nearly 1 percent each, while chipmakers, which get a hugechunk of their revenue from China, also gained.

Advanced Micro Devices IncAMD.O , Micron Technology IncMU.O and Intel CorpINTC.O rose between 1 percent and 1.7percent.

Trade war topped the list of biggest tail risks for theninth straight month, followed by a slowdown in China, accordingto Bank of America Merrill Lynch’s February survey.*:nL5N20735K

At 8:28 a.m. ET, Dow e-minis 1YMc1 were up 194 points, or0.78 percent. S&P 500 e-minis ESc1 were up 18.5 points, or0.68 percent, and Nasdaq 100 e-minis NQc1 were up 54.75points, or 0.79 percent.

Optimism on trade, a largely upbeat fourth-quarter earningsseason and a dovish Federal Reserve have now put the S&P 500index .SPX just 8 percent away from its Sept. 20 recordclosing high.

About 71 percent of the S&P companies that have postedearnings have topped expectations, according to IBES data fromRefinitiv. But analysts’ estimates for first-quarter earningshave turned negative for the first time since 2016.*:nL1N2060OM

Under Armour IncUAA.N rose 1.4 percent after thesportswear maker reported quarterly profit that beat estimatesas it sold more sneakers at full price.*:nL3N2073NN

Gilead Sciences IncGILD.O fell 3.4 percent after alate-stage study of its drug to treat a progressive fatty liverdisease failed to meet its main goal.*:nL1N2061JM

Electronic Arts IncEA.O jumped 8.3 percent after thevideogame maker said its newly launched battle royal game “ApexLegends” crossed more than 25 million players.

Economic data on tap includes the JOLTS job openings numbersfor December due at 10 a.m. ET. The numbers are forecast to haverisen to 6.900 million from 6.888 million in November. (Reporting by Amy Caren Daniel and Shreyashi Sanyal inBengaluru; Editing by Sriraj Kalluvila) (([email protected] ; within U.S.+1-646-223-8780; outside U.S. +91 80 6749 9250 ; ReutersMessaging: [email protected];))