Dow set to open sharply higher, in the triple digits, after US, Canada secure deal to replace NAFTA

US News

U.S. stock index futures skyrocketed ahead of Monday’s open, as investors cheered positive trade news.

Around 5:45 a.m. ET, Dow futures indicated a positive open of around 207 points. Futures on the S&P 500 were indicating a strong open of 17.82 points, while Nasdaq futures signaled a robust open of 60.85 points up.

As a new quarter for trading kicks off, news emerged that Canada and the U.S. had secured a trade deal to replace the current North American Free Trade Agreement (NAFTA).

Talks appeared to have gone down to the wire ahead of today’s deadline. The new accord is expected to be named the United States-Mexico-Canada Agreement, or “USMCA” for short, according to a senior U.S. administration official.

The agreement will deliver more market access to U.S. dairy farmers, while Canada has effectively capped automobile exports to the States. Both nations, along with Mexico – which agreed to a deal earlier this year – are expected to sign the agreement by the end of November. It would then be passed to Congress.

The moves on Wall Street came as some markets in Asia and most markets in Europe cheered the positive news. In addition, futures appeared to be building upon Friday’s strong gains, when theS&P 500 achieving its best quarter since 2013, having risen 7.2 percent during July to September.

Data due Monday includes manufacturing purchasing managers’ index figures at 9:45 a.m. ET, followed by ISM manufacturing PMI data and construction spending, both due at 10 a.m. ET.

In the corporate space, Cal-Maine Foods and Stitch Fix are scheduled to report earnings. Elsewhere, investors are keeping a close eye on Tesla, after news emerged that CEO Elon Musk had settled charges with the Securities and Exchange Commission over his recent bid to take the firm private.

Over the weekend, news emerged that Musk would relinquish his position as chairman of the board at Tesla for at least three years and that, as part of the settlement, Tesla and Musk would pay $20 million each.

On Friday, Facebook announced that it had discovered a security problem that enabled hackers to obtain information that could give them control of the accounts of up to 50 million users.

Elsewhere, investors will be keeping an eye on news surrounding Supreme Court nominee Brett Kavanaugh, as his future at the federal courthouse is called into question, amid allegations of sexual misconduct.

The FBI is currently investigating, following an order from President Donald Trump, who agreed Friday to have the bureau look into the allegations made against Kavanaugh.