Together with S&P 500 and NASDAQ futures, Dow Jones futures were up modestly as Wall Street investors try to wrap their minds around China's "Step One" trade deal -- and how this may affect their money in the coming weeks or months.
China's trade expectations sparked a powerful stock-market rally on Friday, though the real trade truce gains faded. Apple stock has struck a record high, reclaiming its spot as the most valuable company in the world.
In the meantime, tech giants Microsoft stock, Nvidia stock, Google parent Alphabet, Facebook, and Visa are close to "Buy" points. Finally, chief operating officer Dennis Muilenburg was booted from his position as top boss by Boeing Co. late Friday.
Apple Inc is now extended slightly from a purchase zone. Boeing stock is in a buying zone. Yet Microsoft, Nvidia and Google stock are within 2.5 percent of purchase thresholds, while Visa stock and Facebook stock are about 5 percent under proper entries, reclaiming only their 50-day row. All Dow Jones Industrial Average elements are Apple stock, Boeing stock, Microsoft stock, and Visa stock.
Futures for Dow Jones were up 0.36 percent against fair value. S&P 500 futures were up 0.4 percent and Nasdaq 100 futures rallied 0.5 percent. Analysts noted that in the next regular stock market session, overnight activity in Dow futures and elsewhere does not automatically translate into actual trading.
The movement might be a really going to the session on Monday, stock observers said. Futures from Dow Jones could point in one direction, but as more aggressive trading is carried out in regular sessions, especially with the latest China trade news or US President Donald Trump's tweets, the indices could unfold quite differently.
As President Donald Trump put it, China's "substantial step one" trade deal is simply an economic peace treaty of sorts. Trump and his team of advisers said China will purchase an additional $40 billion to $50 billion in US agricultural products and make ambiguous guarantees on intellectual property.
The most positive outcome of China's business talks is that Trump will hold off on Tuesday's tax increases. December tariffs are still on track for now on almost all remaining imports from China, including the Apple iPhone.
The Chinese Ministry of Commerce reported "substantial progress," but did not mention an agreement or any concrete measures, including purchases from farmers.
At the moment, a trade contract with China has not yet been laid down on paper, with specifics in the next few weeks to be finalized. Trump expects to conclude a trade agreement with Chinese leader Xi Jinping sometime next month.
But a trade pact with the Chinese did not materialize earlier when the US alleged that China turned its back in drafting a preliminary contract. But even if all goes according to plan, the agreement with China will still leave some sensitive issues for later. It appears that Trump's new tariffs on Chinese goods will remain in place.
