Stock futures edge higher amid trade worries

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(Reuters) – U.S. stock index futures rose slightly on Thursday, after China approved a U.S. chipmaker deal and Accenture posted strong results, but uncertainty about Washington’s trade stance with China weighed on the mood.

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 27, 2018. REUTERS/Brendan McDermid

Chipmaker Marvell Technology jumped 11.8 percent in premarket trading after the company said it got Chinese regulatory approval for its $6 billion acquisition of smaller rival Cavium Inc. Cavium rose 5.7 percent.

The news comes as the United States moves to restrict Chinese investments in sensitive American technologies.

In what appeared to be a softer approach, U.S. President Donald Trump said on Wednesday he will use a strengthened national security review process to thwart Chinese investments over earlier reports that suggested imposing China-specific restrictions.

U.S. stocks opened with strong gains on Wednesday, but turned lower by afternoon after White House economic adviser Larry Kudlow said Trump’s announced plan did not indicate a softened stance on China.

At 7:26 a.m. ET, Dow e-minis were up 30 points, or 0.12 percent. S&P 500 e-minis were up 4 points, or 0.15 percent and Nasdaq 100 e-minis were up 12.75 points, or 0.18 percent.

U.S. Commerce Department publishes its third estimate for first-quarter gross domestic product, and the report is expected to show output growing at a 2.2 percent annualized rate.

Accenture rose 2.4 percent after the consulting and outsourcing services provider reported quarterly revenue and profit above estimates.

Walgreens Boots fell 1.1 percent even as the pharmacy chain reported a 15.5 percent rise in quarterly profit and said it had authorized a $10 billion share repurchase program.

Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta

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