Upgrade Now

US pre-open: Futures have Dow Jones opening higher following record close

By Iain Gilbert

Date: Thursday 16 Jan 2020

US pre-open: Futures have Dow Jones opening higher following record close

(Sharecast News) - Wall Street futures were pointing to some early gains on Thursday after the US and China signed their "phase one" trade agreement during the previous session.
As of 1220 GMT, Dow futures were up 0.28%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.33% and 0.42% higher, respectively.

The Dow closed 90.55 points stronger at a record high of 29,030.22 on Wednesday as investors cheered the signing of the trade deal between the world's two largest economies.

Under the agreement, Beijing will buy an additional $200.0bn worth of US goods over the next two years, meaning US exports to China should, in theory, rise to $263.0bn in 2020 and $309.0bn in 2021 - marking a record-breaking acceleration of US exports to China.

Vice Premier Liu He said China's other suppliers of agricultural commodities would not be impacted by the Sino-US trade deal since buying will be based on market principles, according to a state-owned outlet CCTV.

However, some analysts still believe that additional tariffs may still be slapped on Beijing despite the signing and have cautioned that there was still a very real threat that trade uncertainties could develop elsewhere, including in Europe.

Oanda's Craig Erlam said: "There's relief at the situation progressing in a positive way that removes some uncertainty but disappointment at the same time that tariffs remain in place and will for the foreseeable future.

"Thankfully, earnings season will provide a handy distraction and may give investors reason to feel cheerful and bullish, even at these levels. It's got off to a mixed start but I feel that may be the theme for much of the next few weeks."

Elsewhere, White House economic advisor Larry Kudlow revealed further tax cuts would take place in 2020.

On the corporate front, Morgan Stanley, Bank of New York Mellon, Charles Schwab and CSX will all report earnings on Thursday.

In terms of data, weekly jobless claims and Philadelphia Fed manufacturing numbers will be posted at 1330 GMT, while business inventories data and the National Association of Home Builders' monthly survey will be released at 1500 GMT.


Email this article to a friend

or share it with one of these popular networks:

Top of Page