July 25, 2018 / 1:11 PM / 5 months ago

US STOCKS-Wall Street set for lower open as Boeing, GM earnings disappoint

* Boeing, GM dip after quarterly results

* Trade in focus ahead of U.S-EU meeting

* Coke up after posting upbeat quarterly results

* NXP slips ahead of China decision on Qualcomm deal

* Futures down: Dow 0.40 pct, S&P 0.16 pct, Nasdaq 0.04 pct (Changes comment, adds details, updates prices)

By Amy Caren Daniel

July 25 (Reuters) - U.S. stocks were set to open lower on Wednesday as earnings reports from Boeing and General Motors failed to impress, ahead of a closely watched meeting between President Trump and European Union officials on trade.

Shares of General Motors fell 5.6 percent in premarket trading after the automaker cut its 2018 profit forecast, citing rising steel and aluminum costs due to U.S. tariffs.

Boeing, the single largest U.S. exporter to China, slipped 3.8 percent after the planemaker maintained its full-year core earnings forecast, but below Street expectations.

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.

“We’re looking at a market that is seeing a juxtaposition between strong fundamentals, earnings and an escalation in trade,” said Art Hogan, chief market strategist at B. Riley FBR in New York.

“The earnings season, which by any estimate is spectacular, is being offset by cautious commentary about the future with the unknown about what trade policy and a strong dollar will mean.”

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.

At 8:36 a.m. ET, Dow e-minis were down 100 points, or 0.40 percent. S&P 500 e-minis were down 4.5 points, or 0.16 percent and Nasdaq 100 e-minis were down 3.25 points, or 0.04 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.

The estimate for second-quarter profit growth of S&P companies has slipped to 20.8 percent, from 21.7 percent on July 23. But the estimate remains higher than the 20.7 at the start of the month, according to Thomson Reuters I/B/E/S.

Coca-Cola rose 0.6 percent after its quarterly sales and profit beat estimates on strong demand for its Zero Sugar brand and the new version of Diet Coke.

NXP Semiconductors slipped 3.8 percent as it awaits Chinese approval for its acquisition by Qualcomm ahead of a deadline later in the day. Qualcomm’s shares were flat.

AT&T fell 0.9 percent after adding more wireless subscribers than expected but missing on quarterly revenue estimates.

United Parcel Service dipped 0.1 percent after reporting quarterly results.

Facebook was flat ahead of 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)

Nuestros Estándares:Los principios Thomson Reuters
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below