By Arjun Panchadar
(Reuters) – Wall Street’s main indexes were set to open higher on Monday as expectations of a U.S.-China trade truce were strengthened by a report that the two sides were nearing an agreement, while a raft of blockbuster deals also buoyed sentiment.
Beijing and Washington were “very close” to a “phase one” trade deal, Chinese state-backed tabloid Global Times said, lifting the mood further after U.S. national security adviser Robert O’Brien said on Saturday that a pact was still possible by the end of the year.
Trade-sensitive stocks, including Caterpillar Inc (N:), Micron Technology Inc (O:) and Applied Materials Inc (O:), rose between 0.6% and 1% in premarket trading.
“You have positive comments on trade, and you have Schwab buying TD Ameritrade which is going to be supportive to the overall market,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.
“I think it (Global Times report) speaks to the same thing. People are hopeful some type of agreement gets signed before the end of the year and we can move on to something further along on trade.”
The benchmark S&P 500 () last week snapped a six-week winning streak and the tech-heavy Nasdaq () registered its first weekly drop in eight weeks amid conflicting reports over a trade truce.
Trade deal hopes and robust third-quarter corporate earnings had helped Wall Street’s main indexes hit record highs this month.
At 8:40 a.m. ET, were up 70 points, or 0.25%.
Shares of Tesla Inc (O:) rose 3.6% premarket after Chief Executive Officer Elon Musk indicated in a tweet on Sunday that the carmaker received 200,000 orders for its electric pickup truck within three days of launch.
Tiffany & Co (N:) gained 5.6% after the luxury jeweler agreed to a sweetened $16.2 billion deal with France’s LVMH (PA:).
U.S. discount brokerage TD Ameritrade Holding Corp (O:) was up 2.2% after larger rival Charles Schwab Corp (N:) said it would buy the company in an all-stock deal valued at about $26 billion. Schwab was down about 2%.
Uber Technologies Inc (N:) fell 4.3% as the ride-hailing company was stripped of its London operating license for the second time in just over two years.
Netflix Inc (O:) slipped 1% after Wells Fargo (NYSE:) downgraded shares of the streaming service to “underperform” from “market perform”.
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