US pre-open: Stocks rise after China announces tariff reduction
Stocks on Wall Street were set for a higher open after China announced that it would lower tariffs on some US exports and amid optimism ahead of the monthly non-farm payrolls data due out the next day.
According to China's ministry of finance, 10.0% tariffs on $75.0bn-worth of American exports would be halved, starting from 14 February.
Some market observers said Beijing's latest move would further buttress global growth prospects in the face of the coronavirus with an interest rate cut in the Philippines overnight also serving to boost investor sentiment.
The latter was on top of rate cuts out of Brazil and Thailand in the previous session.
"The global equity recovery has stepped up a gear in the last twenty fours. The economic threat of the coronavirus has probably been overblown. Even if it hasn’t, central banks have signalled they will come to the rescue anyway," said LCG head of research Jasper Lawler.
"Soothing words and actions from global central banks and the WHO saying there is no pandemic has juiced up markets enough to put coronavirus fears aside."
Against that backdrop, as of 1106 GMT, futures on the Dow Jones Industrials were pointing to opening gains of 96 points to 29,337.0, while those for the S&P 500 were climbing by nine points to 3,344.0.
Unisys Corp. shares were rocketing 13% after Science Applications announced its decision to purchase the IT company's U.S. Federal business for $1.2bn.
Stock in Estee Lauder meanwhile was dipping even after the cosmetics giant posted stronger-than-expected earnings per share of $2.11 (consensus: $1.90).
Shares of insurance giant Cigna were also on the front foot after the firm reported a jump in adjusted earnings per share to $2.6 for the three months ending in December which was up from $0.55 in the year earlier period.
Dunkin Brands was unchanged despite the chain having reported fourth quarter revenues of $335.9m. That was 5.1% higher versus a year ago but a tad below estimates on the Street.