U.S. stocks set for rebound ahead of inflation data

U.S. stocks looked set to resume their recent push higher on Thursday, with equity futures rising amid signs the U.S. and China are open to discussing their trade dispute in high-level negotiations, potentially heading off a global trade war.

Traders were also looking ahead to inflation data, which could help steer the Federal Reserve��s interest-rate policies.

What are markets doing?

Futures for the Dow Jones Industrial Average YMU8, +0.71% �rose 103 points, or 0.4%, to 24,794, while those for the S&P 500 index ESU8, +0.54% �gained 9.40 points, or 0.3%, to 2,783.50. Futures for the Nasdaq-100 index NQU8, +0.47% �rose 26.75, 0.4%, to 7,279.75.

The premarket gains come after a selloff on Wednesday, when U.S. stocks snapped a four-session winning streak as the Trump administration announced plans to impose another round of tariffs on Chinese goods. The Dow DJIA, -0.88% ended 0.9% lower, while the S&P SPX, -0.71% �fell 0.7% and the Nasdaq Composite Index COMP, -0.55% �shed 0.6%.

What is driving the market?

The trading mood on Thursday morning may have been getting a boost from signs the U.S. and China are willing to resume trade talks, which could end up in a bilateral agreement. Bloomberg reported late Wednesday that officials from both countries have raised the prospects of restarting a conversation at a high level.

Fears of a full-blown trade war possibly developing between the world��s two largest economies have weighed on equities around the globe in recent months, although analysts have pointed out that markets have remained somewhat resilient.

What are strategists saying?

��U.S. futures and European markets are trading higher on the back of the hopes that the trade talks between China and the U.S. would resume soon at a higher level,�� said Naeem Aslam, chief market analyst at Think Markets, in a note.

��The hope is that China and U.S. would be able to resolve this matter through bilateral agreement. But uncertainty around this matter has anchored up. The sad aspect is none of the parties are ready to throw in the towel yet, which makes me think that there is no resolution in sight,�� he added.

What��s on the economic calendar?

Inflation data for June are due at 8:30 a.m. Eastern Time, seen as the most important release on Thursday. A strong reading could further strengthen speculation the Fed will raise rates two more times this year, bringing the total to four hikes in 2018.

Economists polled by MarketWatch expect consumer prices to have risen 0.2% month-on-month in June.

At 10:30 a.m. Eastern, Philadelphia Fed President Patrick Harker is due to take part in a discussion at an event in Idaho, and the Treasury Department is slated release its June figures on the federal budget for June at 2 p.m. Eastern.

See: MarketWatch��s Economic Calendar

Stock movers

Shares in software company CA Inc. CA, +0.16% �rallied 16% in premarket trade after chip giant Broadcom Inc. AVGO, -2.84% �confirmed late Wednesday it has agreed to take over the software company for $44.50 a share. Broadcom shares were down 6.5%.

Sara Sjolin

Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.

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Comment Related Topics U.S. Stocks Markets NY Stock Exchange NASDAQ Quote References YMU8 +176.00 +0.71% ESU8 +15.00 +0.54% NQU8 +34.25 +0.47% DJIA -219.21 -0.88% SPX -19.82 -0.71% COMP -42.59 -0.55% CA +0.06 +0.16% AVGO -7.12 -2.84% Show all references MarketWatch Partner Center Most Popular Here��s what smart rich people really do with their nest egg

Tesla to build China factory

Tesla on Tuesday announced plans�to build a new factory in Shanghai that's expected to make 500,000 electric vehicles annually within about five years.

The Palo Alto, California-based automaker signed a deal with the government of Shanghai as CEO Elon Musk visited the city.

Musk had repeatedly said Tesla was closing to announcing�a new plant in China, where he has said the company would collocate production of electric vehicles and batteries.

Tesla said it expects to begin construction "in the near futur,�after we get all the necessary approvals and permits."

After that, the company expects it to take about two years to begin making vehicles and another two to three years to reach 500,000 annually.

��Shanghai will be the location for the first Gigafactory outside the United States," Musk said in a statement. "It will be a state-of-the-art vehicle factory and a role model for sustainability."

More: Tesla Model 3 electric vehicle output reaches 5,000 for a week, pleasing Elon Musk

More: Trump trade war with China could hurt these 10 stocks

More: Elon Musk's plan for a new Tesla plant could set off a gold rush

More: Report: Tesla reaches deal to build factory in China

The long-expected expansion abroad can't come a moment too soon for Tesla, which is getting hit hard by increased Chinese vehicle tariffs imposed on imported vehicles.�

Tesla, which currently assembles all its vehicles at a plant in Fremont, California, raised prices on cars in China after�the trade dispute between President Donald Trump and China prompted the tariff hike from 25 percent to 40 percent.

Manufacturing the vehicles in China would exempt them from those tariffs.

Relief won't come anytime soon, however. It typically takes at least a few years to construct a new automotive assembly plant from scratch.

The Tesla factory in Fremont, California. (Photo: author)

Complicating matters: Tesla has faced significant challenges in accelerating production at its current plant, which must speed up output of the new Model 3 sedan.

The company recently took the unusual step of erecting a�tent outside its California factory to add an assembly line in a bid to make vehicles faster.

One positive development for Tesla is that the Chinese government has signaled plans to remove a previous requirement that automakers share technology and profits with Chinese�partners through joint ventures. Supporters of Trump's trade strategy have credited his aggressive approach with that development, which will bolster Tesla's profitability in China.

"We still have to express an order of appreciation to the Chinese government in that regard," Musk said in May.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

Curbstone Financial Management Corp Has $1.67 Million Position in 3M Co (MMM)

Curbstone Financial Management Corp reduced its holdings in 3M Co (NYSE:MMM) by 5.3% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 8,496 shares of the conglomerate’s stock after selling 480 shares during the quarter. Curbstone Financial Management Corp’s holdings in 3M were worth $1,671,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also added to or reduced their stakes in MMM. D.A. Davidson & CO. increased its stake in 3M by 10.5% in the fourth quarter. D.A. Davidson & CO. now owns 71,551 shares of the conglomerate’s stock valued at $16,841,000 after purchasing an additional 6,777 shares during the last quarter. GWM Advisors LLC increased its stake in 3M by 4.8% in the fourth quarter. GWM Advisors LLC now owns 51,329 shares of the conglomerate’s stock valued at $12,308,000 after purchasing an additional 2,335 shares during the last quarter. Squar Milner Financial Services LLC acquired a new stake in 3M during the fourth quarter worth about $349,000. RFG Advisory Group LLC acquired a new stake in 3M during the fourth quarter worth about $222,000. Finally, State of Wisconsin Investment Board increased its stake in 3M by 0.4% during the fourth quarter. State of Wisconsin Investment Board now owns 695,980 shares of the conglomerate’s stock worth $163,813,000 after acquiring an additional 2,926 shares during the last quarter. Hedge funds and other institutional investors own 65.54% of the company’s stock.

Get 3M alerts:

Shares of MMM stock traded up $0.57 during trading hours on Friday, reaching $197.91. The company had a trading volume of 102,641 shares, compared to its average volume of 2,381,542. The company has a debt-to-equity ratio of 1.11, a quick ratio of 1.17 and a current ratio of 1.65. 3M Co has a twelve month low of $191.44 and a twelve month high of $259.77. The firm has a market cap of $116.26 billion, a P/E ratio of 21.52, a price-to-earnings-growth ratio of 1.86 and a beta of 1.16.

3M (NYSE:MMM) last posted its earnings results on Tuesday, April 24th. The conglomerate reported $2.50 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.50. 3M had a return on equity of 50.11% and a net margin of 12.83%. The business had revenue of $8.28 billion during the quarter, compared to analyst estimates of $8.21 billion. During the same quarter last year, the firm earned $2.16 earnings per share. The company’s revenue for the quarter was up 7.7% compared to the same quarter last year. equities research analysts predict that 3M Co will post 10.37 EPS for the current year.

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 12th. Stockholders of record on Friday, May 18th were paid a $1.36 dividend. The ex-dividend date was Thursday, May 17th. This represents a $5.44 dividend on an annualized basis and a dividend yield of 2.75%. 3M’s dividend payout ratio (DPR) is currently 59.32%.

Several equities research analysts have commented on the company. Zacks Investment Research lowered 3M from a “hold” rating to a “sell” rating in a research note on Wednesday, April 11th. Jefferies Financial Group lowered 3M from a “buy” rating to a “hold” rating and dropped their price target for the stock from $259.77 to $200.00 in a research note on Wednesday, May 16th. Argus dropped their price target on 3M from $285.00 to $240.00 and set a “buy” rating for the company in a research note on Wednesday, April 25th. Royal Bank of Canada upgraded 3M from a “sector perform” rating to an “outperform” rating and set a $238.00 price target for the company in a research note on Thursday, May 3rd. They noted that the move was a valuation call. Finally, Barclays dropped their price target on 3M from $230.00 to $210.00 and set an “underweight” rating for the company in a research note on Wednesday, April 25th. Six research analysts have rated the stock with a sell rating, four have given a hold rating, eight have given a buy rating and one has issued a strong buy rating to the stock. The company presently has an average rating of “Hold” and an average price target of $240.65.

3M Profile

3M Company operates as a diversified technology company worldwide. The company's Industrial segment offers tapes; coated, non-woven, and bonded abrasives; adhesives; ceramics; sealants; specialty materials; purification products; closure systems for personal hygiene products; acoustic systems products; automotive components; and abrasion-resistant films, and paint finishing and detailing products.