© Reuters. FILE PHOTO: Traders work on the floor of the NYSE in New York
By Amy Caren Daniel
(Reuters) – Wall Street is expected to open higher Wednesday in the hope of a trade truce between the United States and China at the G20 summit, while investors eagerly awaited the president's speech. the Fed, Jerome Powell, on the tracks of a rise in interest rates.
While President Donald Trump spoke harshly before a high-stakes meeting with Chinese President Xi Jinping later this week, White House economic adviser Larry Kudlow hinted at the possibility of the two countries reaching an agreement. commercial.
Industrial heavyweights, an indicator of the market's view of trade, have made progress in pre-market trade. Boeing (NYSE 🙂 jumped 2.7% and caterpillar (NYSE 🙂 rose 0.7%.
"Trade has been a problem for a long time and any reference to resolving the Sino-US trade dispute could accelerate global growth," said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh.
Meanwhile, Fed Chairman Powell will speak on the Federal Reserve's "Fiscal Stability Watch Framework" before the Economic Club of New York's lunchtime luncheon at noon. AND.
Trump has been criticizing Powell over the last few months for his interest rate hikes and other Fed policies. His speech will be analyzed for comments on rate hikes next year, especially after Fed officials have warned of global growth prospects and markets have experienced volatility. about two months.
"There is a lot of talk about the fact that the Federal Reserve could reduce the amount of expected rate hikes in the future, and possibly sell part of their balance sheet, which helps the markets," he said. Forrest.
At the macroeconomic level, GDP data showed that the US economy slowed down in the third quarter, as noted earlier, but that the pace was likely sufficient to maintain growth on the government's 3% target. Trump this year.
At 8:32 am, Dow e-minis () gained 159 points, or 0.64%. The S & P 500 e-minis () advanced 12 points (0.45%) and the Nasdaq 100 e-minis () gained 40.75 points (0.61%).
Flea makers, who derive much of their income from China, have also won. Nvidia Corp (O :), Micron Technology Inc (O 🙂 and Advanced Micro Devices Inc (O 🙂 have increased by about 2%.
The group of high level members of FAANG – Facebook Inc (O :), Apple Inc. (O :), Amazon.com Inc. (O :), Netflix (O 🙂 and Alphabet Inc., parent of Google (O 🙂 – grew 0.8% to 1.7 %.
Salesforce.com Inc. (N 🙂 jumped 8.4% after the software maker easily surpassed analysts' estimates of expected quarterly earnings and expected 2020 earnings, while more and more companies are turning to its cloud-based services.
Tiffany & Co (N 🙂 plunged 10.4% after quarterly sales of high-end jeweler's comparable stores missed estimates.
Economic data at 10:00 am (Eastern time) is expected to show that new home sales in the United States in October are forecast at 575,000 units, up from 553,000 in September.
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