US STOCKS-Wall Street set for higher open as U.S.-China trade talks resume

Reuters

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    * U.S. lawmakers working on deal to avoid another shutdown
    * Trade-sensitive Caterpillar, Boeing up premarket
    * EA gains after analysts upbeat on new game 
    * Futures up: Dow 0.47 pct, S&P 0.42 pct, Nasdaq 0.57 pct 

 (Adds comment, updates prices)
    By Amy Caren Daniel
    Feb 11 (Reuters) - Wall Street's main indexes were set to
rise at open on Monday as the latest round of trade talks
between the world's largest economies began in Beijing, while
U.S. lawmakers attempted to hammer out a deal to avoid another
government shutdown.
    China struck an upbeat note on the talks and the Shanghai
exchange rose more than 1 percent after a week-long Lunar New
Year holiday, but a U.S. Navy mission through the disputed South
China Sea weighed on sentiment.  urn:newsml:reuters.com:*:nL3N20614C
    Shares of Boeing Inc  BA.N , the largest U.S. exporter to
China, gained 1.1 percent in premarket trading, while
Caterpillar Inc  CAT.N  climbed 0.7 percent.
    "These trade talks are being viewed as a positive. There is
still a lot of uncertainty but there's this pattern of markets
embracing good news a little bit more than bad news," said Scott
Brown, chief economist at Raymond James in St. Petersburg,
Florida.
    Adding to the positive tone, White House senior counselor
Kellyanne Conway told Fox news that Donald Trump may still meet
with his Chinese counterpart Xi Jinping in the near future.
However, Trump last week said he did not plan to meet with Xi
before the March.  urn:newsml:reuters.com:*:nL1N2060D2  urn:newsml:reuters.com:*:nL1N2020Z6
    The latest trade talks come against the backdrop of last
month's discussions ending without a deal and the top U.S.
negotiator declaring that a lot more work needed to be done. 
    "The market is reacting to shifting news but there won't be
a significant move until we get a resolution to trade," Brown
said.
    In Washington, talks on border security funding collapsed on
Sunday after Democratic and Republican lawmakers clashed over
immigrant detention policy, but a special negotiating panel is
aiming to reach a deal by Monday.  urn:newsml:reuters.com:*:nL1N20503N
    Trade uncertainty and worries of a global economic slowdown
capped gains on the S&P 500  .SPX , which ended last week flat,
still the benchmark index is about 15 percent above its December
lows, helped in part by a dovish Federal Reserve and largely
upbeat earnings reports.
    The fourth-quarter earnings season has entered the home
stretch, with 71.5 percent of the S&P 500 companies that have
reported results topping profit estimates, according to IBES
data from Refinitiv.
    But analysts' estimates for first-quarter earnings for S&P
companies have turned negative.  They expect a decline of 0.1
percent from a year earlier, which would be the first quarterly
profit fall for the group since 2016.  urn:newsml:reuters.com:*:nL1N2030V5
    At 8:20 a.m. ET, Dow e-minis  1YMc1  were up 117 points, or
0.47 percent. S&P 500 e-minis  ESc1  were up 11.25 points, or
0.42 percent and Nasdaq 100 e-minis  NQc1  were up 39.75 points,
or 0.57 percent.
    Some of the major U.S. companies reporting this week include
Coca-Cola Co  KO.N , PepsiCo Inc  PEP.O  and Nvidia Corp
 NVDA.O .
    Tesla Inc  TSLA.O  rose 2.4 percent after brokerage
Canaccord Genuity upgraded the stock, calling its electric
vehicle penetration "underappreciated".
    Electronics Arts Inc  EA.O  gained 3.3 percent after
analysts were upbeat about a strong start to the video-game
publisher's newly launched game.  urn:newsml:reuters.com:*:nL3N2033JH

 (Reporting by Amy Caren Daniel and Shreyashi Sanyal in
Bengaluru; Editing by Sriraj Kalluvila and Saumyadeb
Chakrabarty)
 ((Amy.CarenDaniel@thomsonreuters.com ; within U.S.
+1-646-223-8780; outside U.S. +91 80 6749 9250 ; Reuters
Messaging: Amy.CarenDaniel.thomsonreuters.com@reuters.net))

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