* Trade deficit rises more than expected in October
* Verizon gains after agreeing to sell 29 data centers to
* Intralinks jumps on deal to be bought by Synchronoss
* Futures up: Dow 19 pts, S&P 4 pts, Nasdaq 10.75 pts
(Adds details, comments, updates prices)
By Yashaswini Swamynathan
Dec 6 Wall Street was set to open higher on
Tuesday, with the Dow on track to hit a record high for the
second straight day, as a post-election rally continued.
U.S. stocks have climbed since the Nov. 8 election, driven
by expectations of significant economic stimulus and cuts in
corporate taxes and regulations under President-elect Donald
A spate of strong economic data, including GDP, consumer
confidence and hiring, has fueled the rally.
The Dow, which has been on a record-setting run since the
election, marked fresh record intraday and closing highs on
Monday, buoyed by a report that showed activity in the U.S.
services sector hit a one-year high in November.
""Regardless of who won, we've got a fundamental backdrop
that has been doing better and along with that there is the
possibility of a pro-business environment in 2017," said Art
Hogan, chief market strategist at Wunderlich Equity Capital
Markets in New York.
The Federal Reserve has been preparing the markets for
higher interest rates encouraged by a spate of strong economic
data. Traders currently see a whopping 92 percent chance of a
move when the central bank meets next Tuesday and Wednesday,
according to Thomson Reuters data.
Dow e-minis were up 19 points, or 0.1 percent at
8:32 a.m. ET, with 19,860 contracts changing hands.
S&P 500 e-minis were up 4 points, or 0.18 percent,
with 128,034 contracts traded.
Nasdaq 100 e-minis were up 10.75 points, or 0.22
percent, on volume of 14,038 contracts.
A report from the Commerce Department showed U.S. trade
deficit rose more-than-expected to $42.6 billion, as exports
fell amid declining shipments for soybeans and other goods.
Economists had expected a deficit of $41.8 billion.
However, futures' reaction to the data seemed muted.
A report on factory orders data for October is likely to
show new orders rose 2.6 percent in the month after adding 0.3
percent in September. The data is due at 10:00 a.m. ET.
Shares of Verizon rose 0.50 percent to $50 premarket,
after the wireless carrier agreed to sell 29 data centers to
Equinix for $3.6 billion. Shares of Equinix rose 0.58
percent to $334.
Intralinks soared 15.5 percent to $13.02 after
Synchronoss Technologies said it would buy the
cloud-based business software provider for $821 million,
representing a 15.4 percent premium to Intralinks' Monday close.
Synchronoss shares were off 1.6 percent.
Pandora rose 2.8 percent to $13.75 after brokerage
Aegis Capital initiated coverage on the online radio company's
stock with a "buy" rating and a $16 price target.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by