Investing.com - U.S. stock futures rose to within touching distance of new all-time highs on Monday, on news that the U.S. and China are making progress on agreeing at least a temporary truce to their trade war, while the EU definitively banished the risk of a Hard Brexit later this week.
The Office of the U.S. Trade Representative said Friday that officials were “close to finalizing some sections of the agreement,” while China’s Ministry of Commerce technical details were “basically completed.” The two sides are trying to get a deal before mid-November when Chinese President Xi Jinping and U.S. President Donald Trump meet on the sidelines of the Asia-Pacific Economic Cooperation summit in Chile.
The 'phase-1' deal doesn't attempt to resolve some of the deeper issues underlying the deterioration in the two countries' relations, but does at least reduce the risk of further escalation in the near term of a conflict that has hobbled the world economy this year.
The 'phase-1' deal doesn't attempt to resolve some of the deeper issues underlying the deterioration in the two countries' relations, but does at least reduce the risk of further escalation in the near term of a conflict that has hobbled the world economy this year.
Nasdaq 100 futures rose 20 points or 0.2% by 6:56 AM ET (10:56 GMT), while Dow futures gained 73 points or 0.3% and S&P 500 futures inched up 6 points or 0.2%.
On the earnings front, Google parent company Alphabet (NASDAQ:GOOGL) is expected to report results after the close, along with Beyond Meat (NASDAQ:BYND), T-Mobile (NASDAQ:TMUS) and Nickel Creek Platinum Corp (TSX:NCP).
AT&T (NYSE:T) was up 2.3% after its earnings came in fractionally higher than expected, while revenue came in lower than expected. Net debt remained above the company's targeted range.
Tiffany & Co (NYSE:TIF)surged 28.9% after LVMH made an unsolicited offer reported to be in the range of $120 per share for the luxury jewelry retailer. Spotify (NYSE:SPOT) gained 6.5% after the music streaming company's earnings came in a little better than expected.
Pacific Gas & Electric Co (NYSE:PCG) slumped 17.6% as it extended power shut-offs across northern California in an attempt to stop more wildfires from starting. California Governor Gavin Newsom suggested Sunday that Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) company could be a good owner for the troubled gas and electric company.
On the data front, trade balance data and retail inventories are released at 8:30 AM ET (11:30 GMT).
In commodities, gold futures rose 0.1% to $1,507.25 a troy ounce, while the U.S. dollar index, which measures the greenback against a basket of six major currencies, was down 0.1% to 97.532. Crude oil futures declined 0.4% to $56.41 a barrel.