US STOCKS-Wall Street set for gains after Chinese trade comments

Le | The Live Streaming TV 8-28-19
August 28, 2019
Le | The Live Streaming TV | AUGUST 30 | PART 6
September 3, 2019

US STOCKS-Wall Street set for gains after Chinese trade comments

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window)

* Shares of Apple, Boeing up on China comments

* Best Buy falls as FY same-store sales forecast disappoints

* U.S. dollar stores see less impact from tariffs, shares rise

* Futures up: Dow 1.03%, S&P 0.96%, Nasdaq 1.18% (Adds comments, details; Updates prices)

By Akanksha Rana

Aug 29 (Reuters) – Wall Street was set to open sharply higher on Thursday, as China sounded hopeful of a resolution to the long-standing trade dispute with the United states, easing investor fears of the risk of a recession.

China’s commerce ministry said both sides are discussing the next round of talks scheduled in September and hoped U.S. officials could cancel the planned additional tariffs to avoid an escalation, boosting sentiment and driving global stocks higher.

Trade-sensitive stocks such as Apple Inc and Boeing Co rose more than 1.2% in premarket trading.

Chipmakers, which draw a large part of their revenue from China also gained, with Intel Corp, Qualcomm Inc , Advanced Micro Devices Inc and Nvidia Corp up between 1% and 2.4%.

“We are seeing a bit of a softer tone that’s giving investors hope,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“Perhaps the September talks might bring some fruitful conclusions and some progress that could result in lowering tariffs or getting serious about concluding a trade deal.”

Top gainers among S&P 500 stocks were Dollar General Corp, up 7.9%, and Dollar Tree Inc, up 4.7%, as both companies raised their full-year forecasts.

At 8:39 a.m. ET, Dow e-minis were up 268 points, or 1.03%. S&P 500 e-minis were up 27.75 points, or 0.96% and Nasdaq 100 e-minis were up 89.75 points, or 1.18%.

The Trump administration on Wednesday made official its additional 5% tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15, prompting several hundreds of U.S. companies to warn of price hikes.

A number of companies, including Best Buy Co Inc and Abercrombie & Fitch Co, that reported results earlier in the day warned of the impact from tariffs on their sales.

Shares of the U.S. consumer electronics retailer fell 6.3%, while those of the teen retailer were down 10.4%.

Wall Street’s main indexes are on course to record their worst monthly performance since a selloff in May, spurred by worries that tit-for-tat tariffs will drive the global economy into a recession.

Those fears came to the fore after the U.S. yield curve inversion deepened earlier this week to levels not seen since 2007.