Dipo Olowookere
By Investors Hub
The major U.S. index futures are pointing to a higher opening on Tuesday, with stocks likely to extend the upward move seen in the previous session.
Stocks may benefit from optimism about looming trade talks between the U.S. and China even though President Donald Trump said he doesn’t expect much progress from the talks.
Trading activity is likely to be relatively subdued, however, with a lack of U.S. economic data likely to keep traders on the sidelines.
In the coming days, trading may be impacted by reaction to reports on new and existing home sales and durable goods orders as well as the release of the minutes of the latest Federal Reserve meeting.
After initially showing a lack of direction, stocks moved mostly higher over the course of the trading session on Monday. Buying interest was somewhat subdued, however, limiting the upside for the major averages.
The major averages all ended the day in positive territory. The Dow climbed 89.37 points or 0.4 percent to 25,758.69, the Nasdaq inched up 4.68 points or 0.1 percent to 7,821.01 and the S&P 500 rose 6.92 points or 0.2 percent to 2,857.05.
The strength on Wall Street came as traders seemed to be expressing optimism about upcoming trade talks between the U.S. and China.
Last Friday, a report from the Wall Street Journal said Chinese and U.S. negotiators are drawing up a road map for talks to try to end their trade impasse.
Citing officials in both nations, the Journal indicated the plan would culminate in planned meetings between President Donald Trump and Chinese leader Xi Jinping at multilateral summits in November.
The report came following news that China accepted an invitation from the U.S. for a new round of trade talks to be held later this month.
China’s Ministry of Commerce said that a Chinese delegation led by Vice Commerce Minister Wang Shouwen will travel to the U.S. for trade talks to be held with U.S. Under Secretary of Treasury for International Affairs David Malpass.
The Journal said the U.S.-China trade talks in Washington would take place on August 21st and 22nd, just before the next round of tariffs targeting $16 billion worth of goods on both sides kick in on August 23rd.
Buying interest waned shortly after the open, however, with a lack of major U.S. economic data keeping some traders on the sidelines.
