Futures back in record territory as Middle East tensions fade

[January 09, 2020]  By Sruthi Shankar

(Reuters) - U.S. stock index futures rose on Thursday after the United States and Iran pulled back from new military action, while firming optimism about a U.S.-China trade deal put Wall Street back on track for fresh records.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 8, 2020. REUTERS/Brendan McDermid

China's commerce ministry said on Thursday that Vice Premier Liu He will sign a Phase 1 deal in Washington next week, raising hopes that a prolonged tariff war between the two sides will come to a close.

After a wobbly start in the new year on fears of an all-out conflict in the Middle East, nerves eased on Wednesday as Washington and Tehran looked to defuse the crisis after Iran's retaliatory attack following the killing of a top general.

At 07:23 a.m. ET, Dow e-minis <1YMcv1> were up 107 points, or 0.37%. S&P 500 e-minis <EScv1> were up 11.75 points, or 0.36% and Nasdaq 100 e-minis <NQcv1> were up 48 points, or 0.54%.

Investors are awaiting Friday's jobs report as well as the fourth-quarter earnings season, which begins next week. Earnings for the S&P 500 companies are expected to drop 0.6% in their second consecutive decline, according to Refinitiv IBES data.

Apple <AAPL.O> gained 1.1% after government data showed iPhone sales in China in December jumped more than 18% year on year.

Alphabet <GOOGL.O>, Facebook <FB.O> and Twitter <TWTR.N> rose between 0.6% and 1.2% after Cowen Equity Research raised its price target on the stocks after their survey of U.S. ad buyers showed upbeat 2020 advertisement spending.

Starbucks Corp <SBUX.O> rose 1.5% after Barclays raised to "over weight", while Advanced Micro Devices Inc <AMD.O> gained 2.5% after Mizhuo recommended "buy" on the stock, citing improving server market in 2020.

Beyond Meat <BYND.O> shares rose 1.6% after McDonald's Corp <MCD.N> said it would expand its trial in Canada of vegan burgers made by Beyond Meat.

Coca-Cola Co <KO.N> was up 1% after Credit Suisse upgraded its stock to "outperform" as the brokerage expects revenue to grow at the high-end of the company's 4% to 6% forecast for several years.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty)

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