June 20, 2018 / 1:11 PM / 4 months ago

US STOCKS-Wall Street set to open higher after trade spat selloff

* Fox jumps after Disney raises bid

* GE falls on Dow index exit

* Starbucks, Oracle slip after forecasts disappoint

* Futures up: Dow 0.43 pct, S&P 0.26 pct, Nasdaq 0.36 pct (Adds comment, adds details, updates prices)

By Medha Singh

June 20 (Reuters) - U.S. stocks looked set for a bounce on Wednesday after being battered in the past few sessions following a rapid escalation in trade tensions between the United States and China.

Markets were slammed on Tuesday, with the Dow Jones Industrial Average erasing its year-to-date gains, after President Donald Trump’s latest tariff threats against Chinese goods.

The United States is also under fire from other countries for its protectionist measures. The European Union will start charging import duties of 25 percent on a range of U.S. products from Friday after Washington imposed tariffs on EU steel and aluminum at the start of June.

“A lot of people believe the track that the (U.S.) President is taking is a negotiation tactic. And the people who still think the trade war will develop, believe it would be China that comes to the table with concessions first,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York

“This gives people reason to feel a little bit more comfortable with buying.”

At 8:39 a.m. ET, Dow e-minis were up 107 points, or 0.43 percent. S&P 500 e-minis were up 7.25 points, or 0.26 percent and Nasdaq 100 e-minis were up 26.25 points, or 0.36 percent.

The blue-chip Dow index is on pace to snap a six-day losing streak at current levels.

Industrial equipment maker Caterpillar and Boeing , which are hit the hardest over worries of a trade war, were up more than 1 percent in premarket trading.

“If U.S. names that have more international exposure bounce back (today), that would be a signal that people think (trade threats) is just talk by the (U.S.) President,” said Pavlik.

Chip stocks, which derive a large part of their revenue from China, were also higher.

The 30-stock Dow is set to lose its last remaining original member, General Electric Co, pushing the 126-year-old industrial conglomerate’s shares down 1.5 percent.

Walgreens gained 2.8 percent after S&P Dow Jones Indices said the drug store chain would replace GE on the Dow from June 26.

Fox shares jumped 6 percent after Walt Disney raised its bid, topping Comcast’s offer. Disney gained 1.7 percent while Comcast was marginally down.

Starbucks fell 3.7 percent after the world’s largest coffee chain’s quarterly sales growth forecast missed analysts’ estimates.

Oracle dropped 4.06 percent after the software maker’s current-quarter profit forecast fell short of analysts’ expectations due to a strengthening U.S. dollar.

Reporting by Medha Singh in Bengaluru; Editing by Sriraj Kalluvila

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