Stocks poised to start the week higher buoyed by solid China economic data

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China factory data

Futures point to strong open

U.S. stock futures were pointing to a green open for Wall Street on Monday morning after China hit the mark with GDP growth figures that did not disappoint.

China said its economy grew 4.9% in July-September from the same period last year, slower than the 5.5% expansion that analysts had expected but faster than the second quarter and supported by an acceleration in retail sales and strong gains in industrial output.

The numbers confirm that China is on track for economic recovery from the coronavirus pandemic and come just as virus cases are rising in other parts of the world, particularly in Europe.

By 5:40 a.m. ET, futures tied to the blue-chip Dow were indicated 219 points, or 0.77% higher to 28,627. The S&P 500 futures added 30.37 points, or 0.88% to 3,492.62 while the tech-heavy Nasdaq 100 futures were up 133.12 points, or 1.13% to 11,931.12.

Pelosi sets a new stimulus deadline

Meanwhile, House Speaker Nancy Pelosi has set tomorrow (Tuesday) as the final deadline of getting a stimulus deal done.

In an interview with ABC on Sunday, Pelosi said she and Treasury Secretary Steven Mnuchin must reach an agreement within 48 hours if they want to pass a coronavirus stimulus aid bill before the presidential election in two weeks’ time.

“The 48 only relates to if we want to get it done before the election, which we do. But we’re saying to them we have to freeze the design on some of these things. Are we going with it or not? And what is the language,” Pelosi said.

Pelosi’s announcement kept alive hopes that Democrats and the White House could strike a deal before Election Day. The speaker indicated that if the talks drag on beyond Tuesday, it will be impossible to produce a new relief deal by the election. She and Mnuchin spoke for an hour and 15 minutes on Saturday and agreed to speak again on Monday.

More earnings on tap

Traders are also awaiting several companies to publish their quarterly reports today. Air-conditioning specialist Lennox (NYSE: LII) is expected to report earnings of $3.10 per share on revenue of $981.94 million ahead of the opening bell.

Oilfield services giant Halliburton (NYSE: HAL) is seen posting earnings of 8 cents per share on revenue of $3.09 billion before the bell.

Computer maker IBM (NYSE: IBM) reports after close and is projected to have earned $2.58 per share on revenue of $17.54 billion. Analysts expect PPG Industries (NYSE: PPG) to post earnings of $1.77 per share on revenue of $3.63 billion.

 

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