US STOCKS-Wall St set for lower open after Trump's new tariff salvo; spotlight on inflation data

Reuters
03-13
US STOCKS-Wall St set for lower open after Trump's new tariff salvo; spotlight on inflation data

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Futures off: Dow 0.25%, S&P 500 0.32%, Nasdaq 0.52%

Dollar General forecasts downbeat FY comparable sales growth

Intel gains after naming chip industry veteran Lip-Bu Tan CEO

Adobe falls after dull quarterly revenue forecast

US producer prices unchanged in February

Updates to before markets open

By Johann M Cherian and Pranav Kashyap

March 13 (Reuters) - Wall Street's main indexes were on track to open lower on Thursday after President Donald Trump upped his tariff rhetoric against the European Union, while investors found some reprieve from signs of cooling inflation.

In his latest trade threat, Trump said he would impose duties amounting to 200% on European beverage imports if the EU does not remove surcharges on U.S. whiskey. He had earlier said he would penalize the bloc if it enacted retaliatory tariffs on American goods next month.

U.S. beverage makers such as Brown-Forman BFb.N swung between gains and losses and the stock dropped 0.1% in premarket trading. Molson Coors TAP.N rose 1.7%, while Constellation Brands STZ.N was flat.

"The guidance out of the White House is so erratic that investors cannot absorb every news flash into their investment strategies," said Peter Andersen, founder of Andersen Capital Management.

Markets were hit hard earlier this week by Trump's chaotic trade restrictions, sparking fears that a multi-front trade war could ramp up domestic inflation and potentially stall economic growth.

The fluctuating policies have rattled investors. Brokerages have downgraded their outlooks for U.S. equities and multiple companies have issued downbeat forecasts.

Dollar General DG.N forecast annual comparable sales growth largely below estimates . Its shares were last up 4.3% in choppy premarket trading.

American Eagle Outfitters AEO.N forecast annual revenue below expectations, sending the apparel maker's shares down 6.3%.

Offering some respite to investors worried about the economy's resilience, data showed producer prices were unexpectedly unchanged in February, while a separate weekly report pointed to fewer-than-expected jobless claims .

However, concerns that the trend might not last into the coming months prevailed, with traders expecting the Federal Reserve to lower borrowing costs by nearly 75 basis points in the second half of the year, according to data compiled by LSEG.

At 08:49 a.m. ET, Dow E-minis 1YMcv1 were down 104 points, or 0.25%, S&P 500 E-minis EScv1 were down 17.75 points, or 0.32%, and Nasdaq 100 E-minis NQcv1 were down 102 points, or 0.52%.

The benchmark S&P 500 index nearly confirmed a 10% drop from its February high earlier in the week and is teetering on the brink of its longest weekly losing streak in seven months.

Markets were also on edge with a deadline to pass a funding bill in the U.S. Senate fast approaching. If it goes through, the bill will keep the U.S. government operational through September 30.

The Republican-led House passed the bill earlier in the week, but Senate Democrats are pushing for a short-term extension, to allow for more comprehensive budget negotiations.

Among other stocks, Intel INTC.O jumped 12% after the beleaguered chipmaker appointed industry veteran Lip-Bu Tan its chief executive officer.

Adobe ADBE.O dropped 6.8% after the Photoshop-maker forecast quarterly revenue in line with estimates.

SentinelOne S.N lost 12.9% after the cybersecurity company forecast its first-quarter and annual revenue below Street estimates.

Shares of truck- and parts-makers such as Paccar PCAR.O and Cummins CMI.N fell 6% and 3.5%, respectively, after the Environmental Protection Agency launched efforts to undo the previous administration's vehicle-emissions rules.

(Reporting by Johann M Cherian and Pranav Kashyap in Bengaluru; Editing by Pooja Desai)

((johann.mcherian@thomsonreuters.com;))

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