| | The major U.S. index futures are pointing to a higher opening on Wednesday, with stocks likely to extend the upward move seen over the course of the previous session.
Optimism about a potential U.S.-China trade deal may lead to continued strength on Wall Street after a report from the New York Times said President Donald Trump has signaled a new willingness to reach an agreement with Chinese President Xi Jinping.
While Trump has publicly continued to talk tough on trade with China, several American officials told the Times the president is increasingly worried about the costs of a prolonged trade war on the financial markets and the broader economy.
The Time said a potential trade truce could be reached, delaying new tariffs for several months while the world?s two largest economies try to work out the issues dividing them.
The report from the Times comes as Trump and Xi are due to hold a dinner meeting on the sidelines of the G20 summit in Buenos Aires, Argentina, on Saturday.
Traders are also looking ahead to remarks by Federal Reserve Chairman Jerome Powell, who is due to speak at a luncheon at the Economic Club of New York.
Powell is expected to discuss ?The Federal Reserve's Framework for Monitoring Financial Stability,? although traders will keep an eye out for any comments about the economy or interest rates.
Ahead of Powell?s remarks, Trump attacked the Fed Chairman in an interview with the Washington Post published late Tuesday.
Trump told the Washington Post he is ?not even a little bit happy? with Powell, blaming the Fed for recent stock market weakness and General Motors? (GM) announcement of plant closures and layoffs.
?I?m doing deals, and I?m not being accommodated by the Fed,? Trump said. ?They?re making a mistake because I have a gut, and my gut tells me more sometimes than anybody else?s brain can ever tell me.?
?So far, I?m not even a little bit happy with my selection of Jay. Not even a little bit,? he added. ?I think that the Fed is way off-base with what they?re doing.?
After recovering from an initial move to the downside, stocks fluctuated over the course of the trading session on Tuesday. The major averages spent of the day bouncing back and forth across the unchanged line.
The major averages eventually ended the day in positive territory, although the Nasdaq inched up just 0.85 points or less than a tenth of a percent to 7,082.70. The Dow climbed 108.49 points or 0.4 percent to 24,748.73 and the S&P 500 rose 8.75 points or 0.3 percent to 2,682.20.
The initial pullback on Wall Street reflected renewed skepticism about a trade deal between the U.S. and China following Trump's comments in an interview with the Wall Street Journal.
In the interview published Monday, Trump told the Journal it was "highly unlikely" he would delay an increase in tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent.
Trump also suggested the U.S. could slap 10 percent tariffs on iPhones and laptops imported from China, contributing to an early sell-off by shares of Apple (AAPL).
The comments from Trump come just days before he is due to meet with Chinese President Xi Jinping at a G20 summit in Argentina later this week.
Trump has previously argued his tough talk on trade has actually helped the U.S. to make deals, including the new trade agreement between the U.S., Mexico, and Canada.
Selling pressure waned shortly after the start of trading, however, as traders seemed reluctant to continue selling stocks following recent weakness.
Comments from top White House economic advisor Larry Kudlow about trade talks with the Chinese government "at all levels" contributed to the subsequent recovery by the markets.
On the U.S. economic front, the Conference Board released a report showing a bigger than expected decrease in consumer confidence in the month of November.
The Conference Board said its consumer confidence index dropped to 135.7 in November after rising to 137.9 in October. Economists had expected the index to dip to 136.5.
The bigger than expected decrease by the consumer confidence index came after it reached its highest level since September of 2000 in the previous month.
Despite the turnaround by the major averages, substantial weakness remained visible among steel stocks. The NYSE Arca Steel Index tumbled by 2.4 percent to its lowest closing level in well over a year.
Steel stocks extended a recent downward trend amid concerns about global demand amid the ongoing trade dispute between the U.S. and China.
Gold stocks also showed a significant move to the downside on the day, dragging the NYSE Arca Gold Bugs Index down by 2 percent.
The weakness among gold stocks came amid a decrease by the price of the precious metal, with gold for December delivery sliding $9 to $1,213.40 an ounce.
Natural gas, chemical and biotechnology stocks also saw notable weakness, while some strength emerged among utilities and healthcare stocks.
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Economic growth in the U.S. was unrevised in the third quarter, according to the second reading released by the Commerce Department on Wednesday.
The report said real gross domestic product jumped by 3.5 percent in the third quarter, unrevised from the initial estimate and in line with economist estimates.
Upward revisions to non-residential fixed investment and private inventory investment were offset by downward revisions to consumer spending and state and local government spending.
At 10 am ET, the Commerce Department is scheduled to release its report on new home sales in the month of October. New home sales are expected to climb to an annual rate of 575,000 in October after tumbling to a rate of 553,000 in September.
The Energy Information Administration is due to release its report on oil inventories in the week ended November 23rd at 10:30 am ET.
Crude oil inventories are expected to rise by 0.6 million barrels after jumping by 4.9 million barrels in the previous week.
At 12 pm ET, Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on ?The Federal Reserve's Framework for Monitoring Financial Stability? at the Economic Club of New York.
The Treasury Department is due to announce the results of its auction of $32 billion worth of seven-year notes at 1 pm ET.
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Shares of salesforce.com (CRM) are moving sharply higher in pre-market trading after the customer-management software developer reported better than expected fiscal third quarter results and raised its full-year revenue guidance.
Cloud computing software company Nutanix (NTNX) is also likely to see initial strength after reporting a narrower than expected fiscal first quarter adjusted loss on revenues that exceeded analyst estimates.
Shares of Dick?s Sporting Goods (DKS) may also move to the upside after the sporting goods retailer reported better than expected fiscal third quarter earnings and forecast full-year earnings above expectations.
On the other hand, shares of Tiffany (TIF) are likely to come under pressure after the luxury retailer reported fiscal third quarter earnings that matched estimates but weaker than expected sales.
Women?s apparel retailer Chico's FAS (CHS) is also seeing substantial pre-market weakness after reporting fiscal third quarter results that missed expectations and forecasting a drop in fourth quarter sales.
Shares of J.M. Smucker (SJM) are also likely to see initial weakness after the food company reported fiscal second quarter results below estimates and cut its full-year guidance. | | | | | Become a Shareholder in High Times The Original Voice of Cannabis. Join our investor community and help shape the emerging cannabis industry.
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European stocks are mixed in cautious trading on Wednesday as investors look ahead to a speech by the Federal Reserve Chairman and a critical Trump-Xi meeting at the G20 summit for directional cues.
While the German DAX Index is up by 0.1 percent and the French CAC 40 Index is up by 0.2 percent, the U.K.'s FTSE 100 is down by 0.1 percent amid reports British Prime Minister Theresa May has backed down in a key Brexit battle with Parliament in the face of protests from politicians.
British banks are moving higher ahead of the release of the Bank of England's annual stress tests for banks later today.
AXA Group has also advanced in Paris. The French insurance firm announced a financial update and the group's new capital management policy, with an increased dividend payout range.
High-technology firm Safran has also moved to the upside after its shareholders approved a merger with Zodiac Aerospace.
Credit Suisse Group has also risen. The Swiss banking giant published its Investment Outlook for 2019, noting that equities should regain their footing in 2019, as the economy weathers various risks and expands.
Meanwhile, wealth manager Brewin Dolphin has moved notably lower despite the firm posting a 19 percent increase in annual profit and raising its dividend payout.
Cement giant LafargeHolcim has also dipped despite confirming its 2018 full year targets.
In economic news, Germany consumer confidence is set to slightly weaken at the end of the year as high inflation rates and global economic uncertainty weigh on households' sentiment, survey results from the GfK showed.
The forward-looking consumer confidence indicator is set to drop to 10.4 in December from 10.6 in November, the Nuremberg-based GfK said in its latest report. Economists had forecast a reading of 10.5.
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Asian stocks closed mostly higher on Wednesday after comments from White House economic advisor Larry Kudlow gave rise to new hopes for a de-escalation of the U.S.-China trade dispute.
President Donald Trump remains open to a deal with China and the upcoming G20 summit offers "an opportunity to break through what has been disappointing discussions" in recent months, Kudlow told reporters on Tuesday.
Traders also looked ahead to a speech by Fed Chairman Jerome Powell later in the day and the minutes from the Fed's November meeting due on Thursday for additional clues on the interest rate outlook.
On Tuesday, Fed Vice Chair Richard Clarida reaffirmed the need for further rate hikes but cautioned the tightening path would be data dependant.
China's Shanghai Composite Index jumped 27.06 points or 1.1 percent to close at 2,601.74 and Hong Kong's Hang Seng Index surged up 350.60 points or 1.3 percent to 26,682.56 as investors held out hope for a U.S.-China trade deal.
Japanese shares rose sharply to extend gains for a fourth consecutive session. The Nikkei 225 Index climbed 224.62 points or 1 percent to 22,177.02 points. The broader Topix Index closed 0.6 percent higher at 1,653.66.
Index heavyweight Fast Retailing soared 3.6 percent, Fanuc advanced 1.4 percent and SoftBank added 1 percent. A cheaper yen helped lift exporters, with Canon, Panasonic and Sony rising 1-2 percent.
Dainippon Sumitomo Pharma jumped 18.3 percent to reach its highest level since 1990 after the drugmaker said it had resolved all the disputes underlying its patent infringement lawsuit for its depression drug Latuda.
Chat app operator Line Corp. climbed 2.7 percent to extend Tuesday's rally after it teamed up with Tencent Holdings to offer mobile payment services.
Meanwhile, Australian stocks ended little changed as commodity prices fell broadly on concerns about a slowdown in Chinese demand. The S&P/ASX 200 Index edged down 3.20 points or 1 percent to 5,725.10 after rising 1 percent in the previous session. The broader All Ordinaries Index also closed marginally lower at 5,800.10.
Mining heavyweights BHP and Rio Tinto fell 1-2 percent as Chinese iron ore futures lingered near a four-month low. Gold miners Evolution and Newcrest fell 1 percent and 1.5 percent, respectively after gold prices dipped overnight.
The big four banks ended little changed, while wealth manager AMP tumbled 3.3 percent after saying it plans to accelerate its compensation program for customer charged fees for no service.
On the other hand, construction materials supplier CSR jumped over 2 percent after announcing the sale of its troubled Viridian Glass business for A$155 million.
In economic news, the total value of construction work done in Australia dropped a seasonally adjusted 2.8 percent sequentially in the third quarter of 2018, a government report showed. The drop missed expectations for an increase of 1.0 percent.
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Crude oil futures are falling $0.37 to $51.19 a barrel after slipping $0.07 to $51.56 a barrel on Tuesday. Meanwhile, after slumping $9 to $1,213.40 an ounce in the previous session, gold futures are edging down $0.50 to $1,212.90 an ounce.
On the currency front, the U.S. dollar is trading at 113.84 yen compared to the 113.79 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1283 compared to yesterday?s $1.1289.
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