Acacia leads optical stocks higher after Trump tweets of desire for a ZTE lifeline

Shares of Acacia Communications Inc. ACIA, +1.74%and other optical names are indicating sharply higher in premarket trading after President Donald Trump this weekend tweeted that he was working with China to find Chinese smartphone maker ZTE Corp. ch:000063"a way to get back into business, fast." A few weeks ago, Trump's administration blocked U.

S. companiesfrom selling to ZTE for seven years, alleging that ZTE failed to reprimand employees after violating Iran sanctions. Acacia generated 30% of its revenue from ZTE last year. Shares of fellow optical names Lumentum Holdings Inc. LITE, -0.39%Oclaro Inc. OCLR, -0.12%and Finisar Corp. FNSR, -0.54%are also trading higher premarket on optimism for a ZTE lifeline. Shares of those companies and Acacia sold off in mid-April after the ban was first announced.