(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window.)
*
Futures off: Dow 0.25%, S&P 500 0.32%, Nasdaq 0.52%
*
Dollar General ( DG ) forecasts downbeat FY comparable sales
growth
*
Intel ( INTC ) gains after naming chip industry veteran Lip-Bu Tan
CEO
*
Adobe falls after dull quarterly revenue forecast
*
US producer prices unchanged in February
(Updates to before markets open)
By Johann M Cherian and Pranav Kashyap
March 13 (Reuters) -
Wall Street's main indexes were on track to open lower on
Thursday after President Donald Trump upped his tariff rhetoric
against the European Union, while investors found some reprieve
from signs of cooling inflation.
In his latest trade threat, Trump said he would impose
duties amounting to 200% on European beverage imports if the EU
does not remove surcharges on U.S. whiskey. He had earlier said
he would penalize the bloc if it enacted retaliatory tariffs on
American goods next month.
U.S. beverage makers such as Brown-Forman ( BF/A ) swung
between gains and losses and the stock dropped 0.1% in premarket
trading. Molson Coors ( TAP/A ) rose 1.7%, while Constellation
Brands ( STZ ) was flat.
"The guidance out of the White House is so erratic that
investors cannot absorb every news flash into their investment
strategies," said Peter Andersen, founder of Andersen Capital
Management.
Markets were hit hard earlier this week by Trump's chaotic
trade restrictions, sparking fears that a multi-front trade war
could ramp up domestic inflation and potentially stall economic
growth.
The fluctuating policies have rattled investors.
Brokerages have downgraded their outlooks for U.S. equities and
multiple companies have issued downbeat forecasts.
Dollar General ( DG ) forecast annual comparable sales
growth
largely below estimates
. Its shares were last up 4.3% in choppy premarket trading.
American Eagle Outfitters ( AEO ) forecast annual
revenue below expectations, sending the apparel maker's shares
down 6.3%.
Offering some respite to investors worried about the
economy's resilience, data showed producer prices were
unexpectedly unchanged
in February, while a separate weekly report pointed to
fewer-than-expected
jobless claims
.
However, concerns that the trend might not last into the
coming months prevailed, with traders expecting the Federal
Reserve to lower borrowing costs by nearly 75 basis points in
the second half of the year, according to data compiled by LSEG.
At 08:49 a.m. ET, Dow E-minis were down 104
points, or 0.25%, S&P 500 E-minis were down 17.75
points, or 0.32%, and Nasdaq 100 E-minis were down 102
points, or 0.52%.
The benchmark S&P 500 index nearly confirmed a 10% drop
from its February high earlier in the week and is teetering on
the brink of its longest weekly losing streak in seven months.
Markets were also on edge with a deadline to pass a
funding bill
in the U.S. Senate fast approaching. If it goes through,
the bill will keep the U.S. government operational through
September 30.
The Republican-led House passed the bill earlier in the
week, but Senate Democrats are pushing for a short-term
extension, to allow for more comprehensive budget negotiations.
Among other stocks, Intel ( INTC ) jumped 12% after the
beleaguered chipmaker appointed industry veteran Lip-Bu Tan its
chief executive officer.
Adobe dropped 6.8% after the Photoshop-maker
forecast quarterly revenue in line with estimates.
SentinelOne ( S ) lost 12.9% after the cybersecurity company
forecast its first-quarter and annual revenue below Street
estimates.
Shares of truck- and parts-makers such as Paccar ( PCAR )
and Cummins fell 6% and 3.5%, respectively, after the
Environmental Protection Agency launched efforts to undo the
previous administration's vehicle-emissions rules.