US pre-open: Stocks to rise on Sino-US trade hopes

At 1210 GMT, Dow Jones Industrial Average futures were up 0.6%, while S&P 500 and Nasdaq futures were 0.5% higher.

Sentiment was likely to be boosted by a report that the US might consider easing some trade tariffs against China.

According to the Wall Street Journal, US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for 30 January.

However, the Treasury later denied that Mnuchin had made any such recommendation, while US Trade Representative Robert Lighthizer was said to have resisted the idea.

Oanda analyst Craig Erlam said that at the moment, markets appear to be standing up to the challenge which would suggest the rally in stocks has more to run and this may not just be a corrective move in a bearish market.

"Earnings season will likely have a big say in whether the rally is sustained, as will the Trump administration which always has an eye on the stock market."

In corporate news, Tesla shares were down nearly 8% in pre-market trade after founder Elon Musk said the company would cut its workforce by 7% to boost production of the Model 3.

Elsewhere, Eli Lilly was 2.8% weaker in pre-market trade after the pharmaceutical group reported disappointing results for a phase 3 trial of its Lartruvo treatment.

Tiffany shares could be active after the jeweller reported a drop in holiday sales and issued a downbeat outlook for the full year.

Netflix was also likely to be in focus after it said late on Thursday that it added more new subscribers during the holiday season, but its quarterly results failed to impress.

On the data front, industrial production is at 1415 GMT, while the Michigan consumer sentiment index is at 1500 GMT.