U.S. stock index futures were little changed Wednesday morning as investors awaited the signing of the U.S.-China “Phase One” trade deal.
Around 7:10 a.m. ET, Dow Jones Industrial Average futures indicated a gain of just 12 points at the open. S&P 500 and Nasdaq 100 futures also pointed to marginal gains to start off the session.
Investors have been eagerly awaiting the signing of the so-called phase one trade agreement as the conflict between the world’s largest economies has dragged on for nearly two years.
However, Treasury Secretary Steven Mnuchin said that tariffs on Chinese goods would remain in place until both countries reach an enforceable “phase two” agreement, according to Reuters. There’s also concern over the details of the phase one agreement.
A U.S. Trade Representative document said the deal includes a “dramatic expansion of U.S. food, agriculture and seafood product exports.” The USTR has also said China will buy at least $200 billion in U.S. products over the a two-year period.
Still, if the deal is smaller than what the market expected, it could pressure risk assets such as stocks.
Wall Street also kept an eye on Corporate America as the earnings season. Bank of America reported quarterly results that beat analyst expectations as bond-trading revenue ripped higher. Goldman Sachs posted a revenue for the quarter that surpassed estimates.
So far, about 30 S&P 500 companies have released their quarterly numbers. Of those companies, 82% have posted better-than-expected profits, according to FactSet data.
On the data calendar, the New York Empire State Fed survey will be released at 8:30 a.m. ET, along with December producer price index figures.
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