US STOCKS-Futures bounce as U.S. eases restrictions on Huawei

Reuters

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    * Futures up: Dow 0.49%, S&P 0.56%, Nasdaq 0.83% 

    By Shreyashi   Sanyal
    May 21 (Reuters) - U.S. stock index futures rose on Tuesday
after the United States temporarily eased restrictions on
China's Huawei Technologies, allaying investor concerns over a
further escalation in a bitter trade war between the two
countries.
    Chipmakers, which bore the brunt of Monday's sell-off, rose
in premarket trading after Washington granted the Chinese
telecoms equipment maker a license to buy U.S. goods until Aug.
19.
    Intel Corp  INTC.O , Qualcomm Inc  QCOM.O , Xilinx Inc
 XLNX.O  and Broadcom Inc  AVGO.O  rose between 1.3% and 3%.    
    President Donald Trump added Huawei  HWT.UL  to a trade
blacklist on Thursday, and several companies have suspended
business with the world's largest telecom equipment maker,
triggering fears that the decision could have a bigger impact on
the global technology sector.  
    Reuters reported on Sunday that Alphabet Inc's  GOOGL.O 
Google would stop providing Huawei with access to its
proprietary apps and services but Huawei said on Tuesday it is
working closing with the U.S. company to resolve the
restrictions.  urn:newsml:reuters.com:*:nL5N22X249
    At 7:14 a.m. ET, Dow e-minis  1YMc1  were up 126 points, or
0.49%. S&P 500 e-minis  ESc1  were up 16 points, or 0.56% and
Nasdaq 100 e-minis  NQc1  were up 61.5 points, or 0.83%.
    Investors will also turn their attention to earnings from a
handful of retailers. 
    Home Depot Inc  HD.N  shares dipped 0.1% after the home
improvement chain reported its slowest growth in quarterly
same-store sales in at least three years. Rival Lowe's Cos Inc
 LOW.N  fell 0.2%.  urn:newsml:reuters.com:*:nL4N22X2TB      
    Department store operator J.C. Penney Co Inc  JCP.N  and
rival Kohl's Corp  KSS.N  posted disappointing quarterly
same-store sales. J.C. Penney fell 7%, while Kohl's  KSS.N 
tumbled 10%.  urn:newsml:reuters.com:*:nL4N22X2X2  urn:newsml:reuters.com:*:nL4N22V08L    
    After touching record highs at the beginning of May, Wall
Street's main indexes have succumbed to selling pressure on
mounting concerns about a prolonged U.S.-China trade war. The
S&P 500  .SPX  is on track to post its worst monthly decline
since the December sell-off, trading nearly 4% below its
all-time high. 
    On a thin day for economic data, the National Association of
Realtors is expected to show U.S. existing home sales rose to a
seasonally adjusted annual rate of 5.35 million in April from
5.21 million in March. The report is due at 10 a.m. ET. 

 (Reporting by Shreyashi Sanyal and Sruthi Shankar in Bengaluru;
Editing by Sriraj Kalluvila)
 ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ;
Reuters Messaging:
Shreyashi.Sanyal.thomsonreuters.com@reuters.net))

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