U.S. extends reprieve for Huawei
Stocks on Wall Street are expected to start the Tuesday session higher, after the Trump administration extended a license that will permit American firms to continue doing business with Huawei Technologies Co.
On Monday, the Commerce Department granted Huawei another 90-day license extension that allows it to source some components from U.S. companies.
This is the third time that the U.S. government has given Huawei a 90-day license extension to have “specific, limited engagements in transactions” with American businesses.
White House added the Chinese tech giant to an export blacklist earlier this year, citing national security concerns. The new reprieve will end on February 16, 2020, according to the Commerce Department.
At 4:25 a.m. ET, the blue-chip Dow futures indicated a gain of 73.5 points, or 0.26% to 28,081.5. The S&P 500 futures were up 6.63 points, or 0.21% to 3,128.38 while the tech-heavy Nasdaq 100 advanced 25 points, or 0.3% to 8,358.50.
Fed chair Jerome Powell meets Trump
Meanwhile, Federal Reserve boss Jerome Powell visited President Trump and Treasury secretary Steven Mnuchin at the White House on Monday to discuss interest rates and the economy.
Trump, who has repeatedly blasted Powell and the central bank, described the meeting as “very good” and “cordial.”
“Everything was discussed including interest rates, negative interest, low inflation, easing, Dollar strength & its effect on manufacturing, trade with China, E.U. & others, etc,” he said on Twitter.
He later tweeted: “At my meeting with Jay Powell this morning, I protested fact that our Fed Rate is set too high relative to the interest rates of other competitor countries. In fact, our rates should be lower than all others (we are the U.S.). Too strong a Dollar hurting manufacturers & growth!”
The Fed released a statement saying that Powell did not discuss the expectations for monetary policy with Trump. “Powell’s comments were consistent with his remarks at his congressional hearings last week,” the statement said.
Retail earnings on watch
Elsewhere, investors will be watching for signs of continued growth in U.S. consumer spending when several big retailers report quarterly earnings today.
Home Depot (NYSE: HD), Kohl’s (NYSE: KSS), Medtronic plc (NYSE: MDT) and TJX Companies (NYSE: TJX) are all scheduled to publish their reports ahead of the opening bell.
Urban Outfitters (NASDAQ: URBN) will announce its results after the closing bell.
