Wall St set to open lower as auto tariff threat weighs
* U.S. launches auto imports probe, adds to trade jitters
* L Brands, NetApp fall on weak forecasts
* Medtronic, Williams-Sonoma gain after results
* Futures dip: Dow 0.23 pct, S&P 0.16 pct, Nasdaq 0.17 pct
(Adds comment, adds details, updates prices)
By Medha Singh
May 24 (Reuters) - U.S. stocks were set to open lower on
Thursday as rising concerns over U.S. trade protectionism, this
time around car imports, overshadowed optimism that the Federal
Reserve may be more tolerant of rising inflation than previously
The Trump administration launched a national security probe
into car and truck imports on Wednesday that could lead to new
tariffs, with Beijing calling the move an "abuse" of the clauses
and saying it would defend its interests.
The decision added to jitters over the prospects of trade
negotiations with China, reignited after Trump called for "a
different structure" to any trade deal.
Shares of European and Asian automakers skidded on the
tariff possibility, while U.S. automakers inched marginally
Ford was up 0.2 percent and General Motors
gained 0.4 percent. U.S.-listed shares of Fiat fell 2
percent, while those of Ferrari dipped 0.6 percent.
"The markets are adjusting now with lots of uncertainties,
with China, North Korea, (and the prospect of) a trade war that
could spill over to other parts of the economy and the world,"
said Adam Sarhan, chief executive of 50 Park Investments in New
By 8:50 a.m. ET, Dow e-minis were down 56 points, or
0.23 percent. S&P 500 e-minis were down 4.5 points, or
0.16 percent and Nasdaq 100 e-minis were down 11.5
points, or 0.17 percent.
Wall Street posted small gains on Wednesday after minutes
from the Fed's latest meeting suggested higher inflation may not
result in faster interest rate hikes.
Shares of Victoria's Secret-owner L Brands fell 6
percent, while those of data storage equipment maker NetApp
dropped 4.6 percent following weak forecasts.
Best Buy Co slipped 5.5 percent as investors focused
on slowing online sales growth over the better-than-expected
quarterly comparable sales.
Williams-Sonoma jumped 11.3 percent after the
Pottery Barn owner posted strong quarterly results and gave a
Shares of Medtronic rose 1.5 percent after its
quarterly profit topped Wall Street estimates on higher demand
for heart valves and diabetes devices.
(Reporting by Medha Singh in Bengaluru; Editing by Sriraj
First Published: 2018-05-24 13:55:10
Updated 2018-05-24 15:16:40
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