US STOCKS-Wall St set to open lower on virus woes, U.S.-China tensions

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* JPMorgan tops estimates, Wells Fargo swings to net loss
* Delta warns air travel recovery two years away
* Futures down: Dow 0.10%, S&P 0.44%, Nasdaq 1.10%

(Adds CPI data; Updates prices)
By Medha Singh and Devik Jain
July 14 (Reuters) - Wall Street was set for a lower open on
Tuesday as investors digested a mixed bag of quarterly reports
from U.S. lenders, with new business restrictions in California
and simmering U.S.-China friction also denting risk appetite.
Largest U.S. lender JPMorgan Chase & Co JPM.N rose about
1.2% in premarket trading as it posted a smaller-than-expected
51% drop in second-quarter profit and set aside $10.5 billion to
cover potential bad loans. However, Citigroup Inc C.N fell 0.6% as it reported a
plunge in quarterly profit and set aside billions for potential
loan defaults, while Wells Fargo & Co WFC.N shed 5.5% after it
posted a quarterly net loss.
Wall Street has reclaimed most of its coronavirus-driven
losses since March as a raft of monetary and fiscal stimulus and
improving economic data raised hopes of a swift post-pandemic
recovery.
But a recent record surge in COVID-19 cases and new business
restrictions, particularly in California, have sparked a selloff
in tech stocks, with the Nasdaq pulling back from record highs.
Data on Tuesday showed U.S. consumer prices rebounded in
June after three straight monthly declines, but the underlying
trend suggested inflation would remain muted and allow the
Federal Reserve to keep injecting money into the ailing economy.
Investors are bracing for what could be the sharpest drop in
quarterly earnings for S&P 500 firms since the 2008 financial
crisis, according to Refinitiv IBES data.
"Expectations are so low that there's a good chance there
will be a decent set of earnings reports over the next two or
three weeks," said Christopher Grisanti, chief equity strategist
at MAI Capital Management in Cleveland, Ohio.
Meanwhile, the United States on Monday rejected China's
disputed claims to offshore resources in most of the South China
Sea. The Trump administration also plans to scrap a 2013
auditing agreement that could foreshadow a broader crackdown on
U.S.-listed Chinese firms. At 9:11 a.m. ET, Dow e-minis 1YMcv1 were down 26 points,
or 0.1%. S&P 500 e-minis EScv1 were down 14 points, or 0.44%
and Nasdaq 100 e-minis NQcv1 were down 116.25 points, or 1.1%.
Delta Air Lines Inc DAL.N fell 4% as it warned it will be
more than two years before the industry sees a sustainable
recovery from the "staggering" impact of the coronavirus
pandemic, with demand largely tracking the curve of infections
in different places.