Wall Street should open higher on US and Chinese business hopes By Reuters


Β© Reuters. Traders work on the floor on the New York Stock Exchange (NYSE) in New York

By Akanksha Rana

(Reuters) – US stock index futures signaled a wider opening for Wall Street on Friday, as investors were reassured by signals that the US and China would resume trade talks.

The three leading indexes are on track to close the week with the biggest gains since June, after being subjected to tremendous selling pressure for much of the month due to escalating trade tensions and market pressures. fears of an impending recession.

The S & P 500 () benchmark fell by 3.4% from its record at the end of July. Markets will be closed for Labor Day on Monday.

"This is a continuation of what we saw yesterday and we are optimistic that there will be some sort of progress, which seems to be the most important factor," said economist Scott Brown. Chief at Raymond James in St. Petersburg, Florida. The Chinese Foreign Ministry said the Washington and Beijing trade negotiating teams were maintaining effective communication one day after the two sides discussed the next in-person round in September.

Shares of commercially sensitive companies, including Apple Inc (O πŸ™‚ and caterpillar Inc. (N πŸ™‚ were up nearly 1% before marketing.

Investors are also preparing for a new round of US tariffs on certain Chinese products that would come into effect on Sunday.

"The market thinks there will be some form of negotiation, but the trade dispute is likely to last, especially with the magnitude of September's tariffs," Brown said.

Data from the Commerce Department, which show that US consumer spending rose sharply in July, also eased fears of a recession.

However, the report also suggested that the pace of growth in consumption would probably not be maintained despite poor income gains.

The inflation data will be followed by the monthly jobs report and manufacturing figures next week, which would further clarify the chances of further interest rate cuts. .

At 8:44, ET, up 146 points, or 0.55%. were up 17 points, or 0.58% and were up 45.75 points, or 0.59%.

Ulta Beauty Inc. (O πŸ™‚ dropped 25% after the cosmetics company reduced its profit forecast for the year. Actions of Estee Lauder Cos Inc (N :), e.l.f. Beauty Inc (N πŸ™‚ and Coty Inc (N πŸ™‚ fell between 0.5% and 1.3%.

Dell Technologies Inc. (N πŸ™‚ jumped 8.4%, the maker of computers exceeding analysts' estimates in terms of profit, thanks to the increased demand for desktop computers as well as to looking for more profitable contracts within its server unit in China.

American food company Campbell Soup Co (N πŸ™‚ rose 3.1% after posting earnings above expectations in the fourth quarter.

Marvell Technology Group Ltd (O πŸ™‚ fell 3.3% after the chip maker announced a third-quarter revenue lower than estimates.

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