Dow Set for Third Straight Gain Because Stocks Are Still Hopeful About Trade

6:44 a.m. Let the good times roll for the Dow Jones Industrial Average.

Dow futures have gained 176 points, or 0.8%, setting it up for a third consecutive day of gains, while S&P 500 futures have risen 0.7%, and Nasdaq Composite futures have advanced 0.7%.

The ostensible reason, if we need one, is continued trade talks between the U.S. and China. But does anyone really believe that is the case? More likely, this is a continued bounce following the shellacking the market took in December.

And even if it is China, well, there are a lot more things for investors to continue to worry about-like the beginning o f earnings season. “The key catalyst here is the US-China trade talks and investors are hoping for some kind of progress that will allow equities to recover, while the recent downbeat tone coming from the Fed is also helping things amid expectations for fewer rate hikes,” writes Konstantinos Anthis, head of research at ADSS. “However, investors will now start focusing on the U.S. earnings’ season and it will be key to see whether corporate results continue to slow down, further dampening risk sentiment.”

Still, a rising market sure beats the alternative.

Write to Ben Levisohn at

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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