United States pre-open: Stocks seen higher on trade deal hopes


U.S. and Chinese officials confirmed Friday that they had made substantial progress and reached a "consensus on principles" in efforts to reach a deal, with Trump later telling the press that he would like to see a deal demonstratively signed somewhere in the USA by himself and Chinese President Xi Jinping.

USA stocks were in record-high territory Monday.

Stocks are broadly higher on Wall Street, pushing the Dow Jones Industrial Average toward an all-time high for the first time since July.

The biggest decliner in the S&P 500 was Under Armour. S&P 500 e-minis were up 14.25 points, or 0.47% and Nasdaq 100 e-minis were up 46 points, or 0.56%.

"What I'd be cautious of is that we've seen head fakes in the past on trade", said Art Hogan, chief market strategist at National Holdings.

BANKING ON PROFITS: The widening gap in yields helps banks, which make money by borrowing money at short-term rates and lending it out at longer-term rates while pocketing the difference.

The upswing is a welcome shift for investors after a rocky October, when ongoing trade uncertainty collided with a raft of recession warnings that cast doubt on the life span of the economic expansion, which is now the longest in USA history.

Chevron rose 4.8% and Morgan Stanley rose 2.6%. Energy stocks overall climbed 3.1% as the price of oil rose.

Ross is leading a trade mission in the region and helped to represent the U.S.in meetings related to the annual summit of the Association of Southeast Asian Nations.

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The December crude contract was up 34 cents at US$56.54 per barrel and the December natural gas contract was up 10.7 cents at US$2.82 per mmBTU.

Stocks around the world jumped Monday, with the Stoxx Europe 600 up 1%, Hong Kong's Hang Seng ending up 1.6% and South Korea's Kospi rising 1.4%.

The S&P 500 rose 16 points, or 0.5%, to 3,083.

The athletic apparel company's class A shares plunged 18.9% after it said it has been cooperating with federal regulators for two years on an investigation into its accounting practices.

But the shift doesn't necessarily mean the all-clear for the economy and the market.

After drifting along in a narrow range for months, major indexes have climbed to record territory in recent days.

As stocks have climbed, a closely watched signal of recession risk in the bond market also has eased up.

Limiting the day's gains was a roughly 2.7% drop in shares of McDonald's Corp (MCD.N), which dismissed Chief Executive Steve Easterbrook over a consensual relationship with an employee.

While the broader market rallied Monday, some stocks lagged behind.