Stock futures higher as robust Chinese data eases growth worries

[September 04, 2019]  By Uday Sampath Kumar

(Reuters) - U.S. stock index futures rose on Wednesday after encouraging data from China allayed concerns of slowing global growth in the backdrop of an ongoing trade dispute between the United States and China.

A private survey showed activity in China's services sector expanded at the fastest pace in three months in August, a boost to the world's second-largest economy struggling to reverse a prolonged slump in its manufacturing sector.

Wall Street's three major indexes fell on Tuesday after the United States and China imposed new tariffs on each other's goods over the weekend and on data showing weak U.S. factory activity in August.

Markets have struggled in August as escalating trade tensions and the inversion of a key part of the U.S. yield curve, often seen as a sign of recession, drove investors away from risky assets, pushing the S&P 500 <.SPX> 1.8% lower for the month.

The benchmark is now 4% away from its record high hit in late July.

Intel Corp <INTC.O>, Qualcomm Inc <QCOM.O> and Micron Technology Inc <MU.O> rose between 0.7% and 3% in premarket trading.

Goldman Sachs Group Inc <GS.N>, Bank of America Corp <BAC.N> and JPMorgan Chase & Co <JPM.N> were also trading higher as the benchmark 10-year yield <US10YT=RR> fell.

Investors will also keep a close watch on the monthly jobs report, which is due on Friday, to gauge the likelihood of another interest rate cut from the Federal Reserve at its mid-September meeting.

A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 3, 2019. REUTERS/Andrew Kelly

At 7:17 a.m. ET, Dow e-minis <1YMcv1> were up 195 points, or 0.75%. S&P 500 e-minis <EScv1> were up 22.25 points, or 0.77% and Nasdaq 100 e-minis <NQcv1> were up 72.75 points, or 0.96%.

Among other stocks, Tapestry Inc <TPR.N> shares rose 2.5% after the Coach handbag maker said Chief Executive Officer Victor Luis was stepping down.

Activision Blizzard Inc <ATVI.O> gained 2.2% after brokerage BMO Capital Markets upgraded the videogame publisher's stock to "outperform."

Tyson Foods Inc <TSN.N> shares fell 5.1%, after the United States' biggest meat processor cut its 2019 earnings forecast, citing a litany of causes including a recent fire at its Holcomb slaughterhouse and volatility in the commodity market.

On the data front, a report from the Commerce Department is expected to show U.S. trade deficit in July narrowed to $53.5 billion from $55.2 billion in June. The report is due at 8:30 a.m. ET.

(Reporting by Uday Sampath in Bengaluru; Editing by Anil D'Silva)

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