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US pre-open: Stocks called to open higher despite mixed signals on trade

By Iain Gilbert

Date: Tuesday 19 Nov 2019

US pre-open: Stocks called to open higher despite mixed signals on trade

(Sharecast News) - US futures had stocks opening higher on Tuesday despite some mixed signals on the US-China trade front and a sales miss from retail giant Home Depot.
As of 1230 GMT, Dow futures were pointing to gains of 0.16% at the bell, while S&P 500 and Nasdaq Composite futures had the indices starting out the session 0.24% and 0.41% firmer, respectively.

The Dow Jones closed 31.33 higher in the first session of the week, shrugging off some heightened caution surrounding Beijing and Washington's protracted trade war.

Former White House chief economic advisor Gary Cohn told CNBC on Monday that he believes Donald Trump will forge ahead with another round of tariffs against China on 15 December if the pair are unable to agree to a trade deal by then.

CMC Markets analyst David Madden said: "Yesterday we heard that Beijing were pessimistic about the possibility of signing phase one the trade deal, and the story hasn't moved along.

"Traders are buying back into the market despite the lack of progress on the trade front. The issue has dominated the headlines in recent weeks and is likely to stay at the forefront of dealers' minds until mid-December - when the US are due to slap on new tariffs."

On the data front, housing starts and building permit figures for October will be published at 1330 GMT, while NY Federal Reserve president John Williams will address the media at 1400 GMT.

Elsewhere, the House Permanent Select Committee on Intelligence will begin its latest open hearing as part of the Trump impeachment inquiry at 1400 GMT.

In corporate news, home improvement retailer Home Depot slid 5.17% in pre-market trading after the company once again cut its 2019 forecast and reported same-store sales well below estimates, while Kohl's shares tanked 11.18% ahead of the bell after its earnings and sales for the latest quarter fell short of analysts' estimates and also cut its profit outlook for the full year.

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