US STOCKS-Wall St set to open lower after China's tough talk on trade

  • Reuters
  • Stock Market News
US STOCKS-Wall St set to open lower after China's tough talk on trade
Credit: © Reuters.

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* Pinterest plummets after 2019 revenue forecast disappoints

* Trade war will only make us stronger - China newspaper

* Under Armour gains after JPM upgrades to "overweight"

* Futures down: Dow 0.82%, S&P 0.79%, Nasdaq 1.05% (Adds comment, updates prices)

By Amy Caren Daniel

May 17 (Reuters) - Wall Street was set to break a three-day winning streak on Friday, as trade worries returned after Chinese media took a hard stance on the tariff dispute between the United States and China.

The trade war will only make China stronger and will never bring the country to its knees, the ruling Communist Party's People's Daily wrote in a front-page commentary. higher tariffs on U.S. products on a $60 billion target list will take effect on June 1, which could prompt Washington to go ahead with tariffs on a further $300 billion worth of Chinese goods. two sides are expected to meet in China to resume talks soon.

"Mounting trade worries and geopolitical tensions are weighing on investors nerves," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"The trade war tensions are overcoming the positive in markets so investors are skeptical and markets are caught in a trading range."

Boeing (NYSE: BA ) Co BA.N , the single largest U.S. exporter to China slipped 0.7% in premarket trading and Caterpillar (NYSE: CAT ) fell 1.7%.

Technology companies including iPhone maker Apple Inc AAPL.O and chipmakers, which rely on China for a large portion of their revenue, were also hit by trade fears.

Apple Inc AAPL.O fell nearly 2% also weighed down by Nomura Instinet's price target cut on its stock, citing headwinds from the tariff war.

The escalating tensions between the world's two largest economies also led farm equipment maker Deere & Co DE.N to cut its full-year forecast. Its shares declined 4%.

All three major indexes have posted gains three days in a row this week as upbeat quarterly results and a batch of strong economic data helped ease worries of a global economic slowdown.

The S&P 500 index .SPX is now about 2% away from its record high hit earlier this month.

At 8:11 a.m. ET, Dow e-minis 1YMc1 were down 213 points, or 0.82%. S&P 500 e-minis ESc1 were down 22.75 points, or 0.79% and Nasdaq 100 e-minis NQc1 were down 79.75 points, or 1.05%.

Shares of Micron Technology Inc MU.O , Broadcom Inc AVGO.O and Intel Corp INTC.O fell between 1% and 2%.

Applied Materials Inc AMAT.O gained 4.1% after the chip gear maker's upbeat third-quarter profit eased concerns about waning chip demand. scrapbook company Pinterest Inc PINS.N slumped 16.1% after the recent Wall Street debutant forecast 2019 revenue broadly in line with Wall Street targets. Armour Inc UAA.N rose 3.4% after JP Morgan upgraded the sports wear maker to "overweight" from "neutral".

Also on investors watch is the debut of Luckin Coffee Inc LK.O , the Chinese challenger to Starbucks Corp SBUX.O .

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