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U.S. Stocks May Open Higher On Optimism About Trade Deal, Earnings

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Following the mixed performance seen last week, stocks may move to the upside in early trading on Monday. The major index futures are currently pointing to a modestly higher open for the markets, with the Dow futures up by 39 points.

The markets may benefit from renewed optimism about the completion of phase one of a U.S.-China trade deal following comments from President Donald Trump and Chinese Vice Premier Liu He.

Trump said he thought an agreement would be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on November 16 and 17.

Meanwhile, Liu said that China and the United States would work to address each other's core concerns on the basis of equality and mutual respect.

"China and the U.S. have made substantial progress in many aspects, and laid an important foundation for a phase one agreement," Liu said at a tech conference on Saturday, according to Bloomberg News.

The strong corporate results reported last week have also made traders hopeful as earnings season gets into full swing in the coming days.

McDonald's (MCD), Procter & Gamble (PG), UPS (UPS), Caterpillar (CAT), eBay (EBAY), Ford (F), Microsoft (MSFT), Tesla (TSLA), Twitter (TWTR), Amazon (AMZN), and Intel (INTC) are just a few of the companies due to report their results this week.

Overall trading activity may remain somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

Later this week, trading could be impacted by reaction to reports on new and existing home sales, durable goods orders and consumer sentiment.

Stocks moved mostly lower over the course of the trading day on Friday, more than offsetting the modest gains posted on Thursday. The major averages all finished the session firmly in negative territory.

The Dow saw further downside going into the close, ending the day down 255.68 points or 1 percent at 26,770.20. The Nasdaq climbed off its worst levels but still slid 67.31 points or 0.8 percent to 8,089.54 and the S&P 500 fell 11.75 points or 0.4 percent to 2,986.20.

The major averages turned in a mixed performance for the week. The Dow dipped by 0.2 percent, while the Nasdaq and the S&P 500 rose by 0.4 percent and 0.5 percent, respectively.

In overseas trading, stock markets across the Asia-Pacific region moved modestly higher during trading on Monday. Japan's Nikkei 225 Index rose by 0.3 percent, while China's Shanghai Composite Index inched up by 0.1 percent.

The major European markets have also moved to the upside. While the German DAX Index has advanced by 0.9 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are up by 0.3 percent and 0.2 percent, respectively.

In commodities trading, crude oil futures are sliding $0.34 to $53.44 a barrel after slipping $0.15 to $53.78 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,495.40, up $1.30 from the previous session's close of $1,494.10. On Friday, gold fell $4.20.

On the currency front, the U.S. dollar is trading at 108.54 yen compared to the 108.45 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1164 compared to last Friday's $1.1167.

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