July 25, 2018 / 12:01 PM / 4 months ago

US STOCKS-Futures drop as Boeing, GM results disappoint

* Futures down: Dow 0.42 pct, S&P 0.23 pct, Nasdaq 0.15 pct

By Amy Caren Daniel

July 25 (Reuters) - Disappointing reports from Boeing and General Motors pushed U.S. stock index futures lower on Wednesday, ahead of a closely watched meeting between President Trump and European Union officials on trade.

Shares of Boeing, which is the single largest U.S. exporter to China, fell 3 percent in premarket trading after the planemaker’s results.

General Motors fell 5.5 percent after the automaker cut its 2018 earnings forecast, citing rising steel and aluminum costs due to U.S. tariffs.

Air conditioner maker Ingersoll-Rand said tariffs hurt its margins, while Indian motorcycle-maker Polaris Industries said it would have to absorb additional tariff and related commodity cost increases this year.

European Commission President Jean-Claude Juncker is due to meet Trump for trade talks later in the day, with trade commissioner Cecilia Malmstrom saying that the European Union is preparing to slap tariffs on $20 billion of U.S. goods if Trump raises tariffs on cars imported from the bloc.

Coca-Cola and United Parcel Service dipped after reporting quarterly results.

At 7:40 a.m. ET, Dow e-minis were down 107 points, or 0.42 percent. S&P 500 e-minis were down 6.5 points, or 0.23 percent and Nasdaq 100 e-minis were down 11.25 points, or 0.15 percent.

The earnings season so far has been strong enough to nudge the benchmark S&P 500 index to within 2 percent of its all-time high.

But the estimate for profit growth of S&P companies in the second quarter have slipped – to 20.8 percent from 21.7 percent on July 23. But remains higher than the 20.7 estimate as of July 1, according to Thomson Reuters I/B/E/S.

AT&T fell 1.2 percent after adding more wireless subscribers than expected but missing on quarterly revenue estimates.

NXP Semiconductors slipped 3.9 percent as it awaits Chinese approval for its acquisition by Qualcomm ahead of a deadline later in the day. Qualcomm declined 0.4 percent, in low volumes.

Facebook was flat ahead of its results, which are due after markets close.

On the macro front, a report from the Commerce Department at 10 a.m. ET will likely show that new home sales fell 2.8 percent to a rate of 670,000 units in June. (Reporting by Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila)

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