US STOCKS-Futures back in record territory as Middle East tensions fade

U.S. stock index futures rose on Thursday after the United States and Iran pulled back from new military action, while firming optimism about a U.S.-China trade deal put Wall Street back on track for fresh records.

China's commerce ministry said on Thursday that Vice Premier Liu He will sign a Phase 1 deal in Washington next week, raising hopes that a prolonged tariff war between the two sides will come to a close. After a wobbly start in the new year on fears of an all-out conflict in the Middle East, nerves eased on Wednesday as Washington and Tehran looked to defuse the crisis after Iran's retaliatory attack following the killing of a top general.

At 07:23 a.m. ET, Dow e-minis were up 107 points, or 0.37%. S&P 500 e-minis were up 11.75 points, or 0.36% and Nasdaq 100 e-minis were up 48 points, or 0.54%. Investors are awaiting Friday's jobs report as well as the fourth-quarter earnings season, which begins next week. Earnings for the S&P 500 companies are expected to drop 0.6% in their second consecutive decline, according to Refinitiv IBES data.

Apple gained 1.1% after government data showed iPhone sales in China in December jumped more than 18% year on year. Alphabet, Facebook and Twitter rose between 0.6% and 1.2% after Cowen Equity Research raised its price target on the stocks after their survey of U.S. ad buyers showed upbeat 2020 advertisement spending.

Starbucks Corp rose 1.5% after Barclays raised to "over weight", while Advanced Micro Devices Inc gained 2.5% after Mizhuo recommended "buy" on the stock, citing improving server market in 2020. Beyond Meat shares rose 1.6% after McDonald's Corp said it would expand its trial in Canada of vegan burgers made by Beyond Meat.

Coca-Cola Co was up 1% after Credit Suisse upgraded its stock to "outperform" as the brokerage expects revenue to grow at the high-end of the company's 4% to 6% forecast for several years.