February 27, 2019 / 2:02 PM / 3 months ago

US STOCKS-Wall St set to open lower as Trump-Kim summit starts, India-Pakistan tensions flare

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* U.S.-North Korean nuclear summit starts in Hanoi

* Impact of India-Pakistan tensions spreads from Asia to Europe

* Fed’s Powell to appear for second hearing this week in Congress

* Mylan hit by Q4 profit miss; Best Buy jumps on Q4 results beat

* Futures down: Dow 0.16 pct, S&P 0.16 pct, Nasdaq 0.21 pct (Adds comments, details, updates prices)

By Shreyashi Sanyal

Feb 27 (Reuters) - Wall Street was set to open slightly lower on Wednesday, mirroring losses in global markets, as the second U.S.-North Korean nuclear summit kicked off and tensions flared up between nuclear-armed neighbors India and Pakistan.

North Korean leader Kim Jong Un and Donald Trump met in Hanoi, with the U.S. president saying he was not walking back on U.S. demands for North Korea’s denuclearisation.

India and Pakistan both said on Wednesday they shot down each other’s fighter jets , a day after Indian warplanes struck inside Pakistan for the first time since a 1971 war, prompting world powers to urge restraint.

“Tension between India and Pakistan is weighing on markets this morning ahead of a very busy day of events,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“We don’t expect (Federal Reserve Chair Jerome) Powell’s second round of testimony before the U.S. House Financial Committee to change, thereby keeping the focus on geopolitical worries and the Trump-Kim summit that will likely lead to a mixed market session.”

Powell said on Tuesday that the Fed was in “no rush to make a judgment” about further changes to interest rates and that rising risks and recent soft data should not prevent solid growth for the U.S. economy this year.

The Fed’s dovish signals and optimism around China-U.S. trade talks have boosted equities in recent weeks, pushing the benchmark S&P 500 index to within roughly 5 percent of its record closing high hit in late September.

At 8:38 a.m. ET, Dow e-minis were down 41 points, or 0.16 percent. S&P 500 e-minis were down 4.5 points, or 0.16 percent and Nasdaq 100 e-minis were down 15.25 points, or 0.21 percent.

Among stocks, shares of Mylan NV sank 9.3 percent in premarket trading after the generic drugmaker missed quarterly profit estimates and forecast weak 2019 earnings, as it grappled with significant problems at its Morgantown, West Virginia plant.

Best Buy Co Inc jumped 11.6 percent after the consumer electronics retailer beat analysts’ estimates for quarterly same-store sales, while announcing a hike in dividend and a plan to buy back shares

Lowe’s Companies Inc rose 4.6 percent after the U.S. home improvement chain’s fourth-quarter profit beat market expectations.

The Commerce Department will release its report on December factory goods orders at 10:00 a.m. ET, likely showing a 0.5 percent rise, compared with an unexpected fall in November.

The factory data comes ahead of Commerce Department’s advance fourth-quarter gross domestic product report on Thursday, which will include some of the data that would normally go into the second GDP estimate.

The GDP report could have a very big impact on markets, because it will be the first and second report at the same time due to the government shutdown and will be the first look of the quarter, said Randy Frederick, vice president of trading and derivatives for Charles Schwab. (Reporting by Shreyashi and Medha Singh in Bengaluru; Editing by Anil D’Silva)

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