(Reuters) – Wall Street looked set to start the week on an upbeat note on Monday on fresh signs of progress in a long-awaited resolution to the U.S.-China trade war, but a fall in Boeing’s shares capped early gains.
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., October 18, 2019. REUTERS/Brendan McDermid
White House adviser Larry Kudlow said in an interview to Fox Business that tariffs scheduled for December could be withdrawn if trade negotiations continue to go well.
His comments added to optimism from positive remarks by Beijing and Washington late last week indicating that a trade deal might be in the offing.
“Any kind of positive development on trade just gets people a little excited, although it is too optimistic to believe that they will reach a whole trade deal as early as mid-November,” said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York.
However, Boeing Co (BA.N) was set to extend a slide from the previous session as two brokerages downgraded the stock after leaked messages from a former test pilot showed he might have unintentionally misled regulators about the safety of the grounded 737 MAX jet.
Shares of the planemaker fell 2.5%.
Wall Street has recovered after a rough start to the month on signs of progress in talks between the world’s two largest economies and as the third-quarter earnings season kicked off on a strong footing.
At 8:58 a.m. ET, Dow e-minis 1YMcv1 were up 44 points, or 0.16%. S&P 500 e-minis EScv1 were up 11.75 points, or 0.39% and Nasdaq 100 e-minis NQcv1 were up 36.75 points, or 0.47%.
Analysts have projected the first earnings contraction since 2016 for S&P 500 companies, but of the 73 companies that have reported results so far, nearly 84% have topped analysts’ estimates.
Oilfield services provider Halliburton Co (HAL.N) dropped 1.5% after reporting a 32% slump in third-quarter profit, hit by a slowdown in shale drilling in North America, its biggest market.
Coty Inc (COTY.N) jumped 11.2% after the cosmetics maker said it was planning to sell its professional beauty business that houses brands such as Wella and OPI.
Drug distributors Cardinal Health Inc (CAH.N) and McKesson Corp (MCK.N) pared some losses after the companies, along with AmerisourceBergen Corp (ABC.N) and Teva Pharmaceutical Industries (TEVA.TA), reached a settlement with two Ohio counties related to the opioid crisis.
Reporting by Shreyashi Sanyal in Bengaluru; Editing by Anil D’Silva and Arun Koyyur