June 26, 2019 / 1:15 PM / 2 months ago

US STOCKS-Wall Street set to open higher on trade hopes

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

* Mnuchin says U.S., China close to trade deal -CNBC

* Trade-sensitive Boeing, Caterpillar rise

* Micron jumps after upbeat results

* General Mills falls on disappointing sales

* Futures up: Dow 0.30%, S&P 0.31%, Nasdaq 0.50% (Updates prices, adds comments)

By Shreyashi Sanyal

June 26 (Reuters) - U.S. stocks were set to open higher on Wednesday, bouncing back from a 1% drop in the previous session, after Treasury Secretary Steven Mnuchin’s comments fueled optimism that the United States and China would finally strike a trade deal.

“We were about 90% of the way there (with a deal) and I think there’s a path to complete this,” Mnuchin said in an interview to CNBC.

Trade-sensitive industrial companies, including Boeing Co and Caterpillar Inc, gained about 1% in premarket trading.

“Any good news on trade is good news for the equity markets. As long as the two countries are negotiating, it’s a good thing and that’s what is going moving markets at this time,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

Futures, however, pared some gains after President Donald Trump said he would impose additional tariffs on China if he did not reach a trade deal with Chinese leader Xi Jinping.

Market participants are awaiting a planned meeting between Trump and the Chinese president at the Group of 20 summit in Japan on Friday.

The three main indexes fell sharply on Tuesday after the Federal Reserve chairman pushed back on pressure from Trump to cut interest rates.

However, traders still fully expect a rate cut from the Fed in July and see a 25% possibility of a half-point move.

The S&P 500 index has gained 6% so far in June, hitting a record high last week, on hopes that the Fed would cut rates to counter the impact of the trade war.

Micron Technology Inc jumped 8.6%, leading a rally among chipmakers, which often source and supply products to China.

The company said it had resumed some shipments to Chinese telecoms equipment maker Huawei Technologies Co Ltd and still expected demand for its chips to recover later this year.

Shares of Intel Corp, Advanced Micro Devices Inc and Nvidia Corp rose between 1.3% and 3%.

At 8:36 a.m. ET, Dow e-minis were up 80 points, or 0.3%. S&P 500 e-minis were up 9 points, or 0.31% and Nasdaq 100 e-minis were up 38 points, or 0.5%.

Among other stocks, General Mills Inc slipped 4.7% after the food packaging company missed quarterly sales estimates, hurt by lower demand for its snacks in North America.

Data from the Commerce Department showed new orders for key U.S.-made capital goods rose more than expected in May and shipments increased solidly, suggesting some stabilizing in business spending on equipment after it fell early in the year. (Reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Anil D’Silva)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below