Futures gain on trade deal optimism; service sector data awaited

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[November 05, 2019]  By Arjun Panchadar

(Reuters) - Wall Street futures rose on Tuesday, a day after all three major U.S. stock indexes closed at record highs on rising hopes of a trade deal between Washington and Beijing.

China is pushing President Donald Trump to remove more tariffs as part of the deal, which may be signed this month, according to the latest reports.

Trade-sensitive chipmakers, including Advanced Micro Devices Inc <AMD.O> and Nvidia Corp <NVDA.O>, rose between 0.6% and 1.1% in premarket trading. U.S.-listed Chinese stocks also looked set to extend another session of gains.

Gathering optimism around the resolution of the trade war, along with a largely better-than-expected third-quarter earnings season and an upbeat October jobs report have spurred a Wall Street rally this month.

The S&P 500 and Nasdaq closed at record highs for the second consecutive session on Monday, while the Dow Jones hit a record high for the first time since July.

Generic drugmaker Mylan NV <MYL.O> rose 1.9% after beating Wall Street estimates for third-quarter profit, benefiting from drug launches such as Wixela and Fulphila.

Tapestry Inc <TPR.N> was up 2.5% as it also beat quarterly profit estimates on strong demand for its high-margin Coach handbags and apparel in China and Europe.

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Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., November 4, 2019. REUTERS/Brendan McDermid

Investor attention now shifts to the ISM's services report, which is expected to show a reading of 53.5 in October, up from 52.6 in September. The report is due at 10 a.m. ET.

At 7:37 a.m. ET, Dow e-minis <1YMcv1> were up 71 points, or 0.26%. S&P 500 e-minis <EScv1> were up 6.25 points, or 0.2% and Nasdaq 100 e-minis <NQcv1> were up 20.5 points, or 0.25%.

Uber Technologies Inc <UBER.N> fell 5.8% after the ride-hailing service posted a wider third-quarter loss as it tried to outspend competitors through discounts.

Shares of Xerox Holdings Corp <XRX.N> were up 5.3% after the photocopier maker said it would sell its 25% stake in Fuji Xerox, its joint venture with Fujifilm Holdings <4901.T>, for $2.3 billion.

(Reporting by Arjun Panchadar in Bengaluru; Editing by Anil D'Silva)

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