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US pre-open: Stocks seen flat to touch higher ahead of Citigroup, Goldman earnings

By Michele Maatouk

Date: Monday 15 Apr 2019

US pre-open: Stocks seen flat to touch higher ahead of Citigroup, Goldman earnings

(Sharecast News) - US stocks looked set for a flat to slightly firmer open on Monday as earnings seasons got underway, with banking giants Citigroup and Goldman Sachs slated to report their first-quarter numbers before the opening bell.
At 1215 BST, Dow Jones Industrial Average futures were up 0.2%, while S&P 500 and Nasdaq futures were flat.

Sino-US relations were in focus again after US Treasury Secretary Steve Mnuchin said over the weekend that he was hopeful talks between the two would soon come to a close. According to Reuters, Mnuchin said on Saturday that a deal between the two nations would go "way beyond" previous agreements and that the two sides were "close to the final round" of negotiations.

Analysts at Rabobank said:"The US has been pushing China to not only make concessions as regards its current trade imbalances with the US, but to open up to greater US investment that is free from Chinese influence and make sweeping amendments to domestic practices that for many years have seen Chinese firms helping themselves, quite openly, to US intellectual property.

"Agreement over the weekend that the US would also be subject to Chinese enforcement should the US not stick to its side of the agreement was significant given this has proven a major sticking point during negotiations between both parties. The agreement that enforcement would be a two way street was read as an important signal that the discussions are indeed edging ever closer to a final deal, boosting market sentiment."

On the corporate front, first-quarter earnings from Citigroup and Goldman Sachs will be scrutinised ahead of the opening bell, particularly following the impressive numbers from Wells Fargo and JPMorgan Chase at the end of last week.

Elsewhere, shares in Advanced Disposal Services surged 20% in pre-market trade as it agreed to be bought by Waste Management Inc in a $4.9bn deal. Under the terms of the transaction, Waste Management will pay $33.15 a share for each Advanced Disposal share.

In other deal news, New Jersey-based Catalent Inc has agreed to buy privately-held gene therapy company Paragon Bioservices for $1.2bn.

On the macroeconomic calendar, the NY Empire State manufacturing index is at 1330 BST.


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