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US STOCKS-Wall St set to open lower as U.S.-China trade optimism fades

Published 23/09/2019, 14:10
© Reuters.  US STOCKS-Wall St set to open lower as U.S.-China trade optimism fades
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Sept. PMI reading set to kick off data-heavy week

* Apple gains on tariff exemptions

* Wall Street posts worst session in 2 weeks on Friday

* Futures: Dow down 0.19%, S&P off 0.08%, Nasdaq flat

(Adds comment, details; updates prices)

By Medha Singh and Ambar Warrick

Sept 23 (Reuters) - U.S. stock indexes were set to open

slightly lower on Monday as investors were cautious about

progress in Sino-U.S. trade talks and waited for a slew of

economic reports to gauge the health of the domestic economy.

The indexes recorded their worst session in about two weeks

on Friday - ending a three-week run of gains - after a Chinese

agriculture delegation canceled a visit to Montana. Still, U.S. and Chinese officials described the deputy-level

trade talks last week, meant to lay the groundwork for

high-level negotiations in October, as being "constructive" and

"productive". "While chances of a complete deal are pretty remote, people

are pinning their hopes on any deal where they just stop the

escalation (of the trade war)," said Scott Brown, chief

economist at Raymond James in St. Petersburg, Florida.

After the U.S. central bank's fairly upbeat assessment of

the domestic economy, investors will monitor a host of economic

data in the final week of the third quarter, including core

personal consumption data - the Fed's preferred inflation

measure - and final growth figures for the second quarter.

Data from the IHS Markit Purchasing Manager's Index (PMI) is

expected to show U.S. manufacturing activity holding steady at

50.3 in September, and services PMI as rising to 51.5 from 50.7

in August.

The report, due at 9:45 a.m. (1345 GMT) ET, follows

disappointing business surveys from across the euro zone.

"We did see an increase in factory output and industrial

production number reported last week, but the trend is clearly

lower and that's a bit of a concern," Raymond James' Brown

added.

Investors will also be watching for a speech by Federal

Reserve Bank of New York President John Williams at the 2019

U.S. Treasury Market Conference.

At 8:52 a.m. ET, Dow e-minis 1YMcv1 were down 51 points,

or 0.19%. S&P 500 e-minis EScv1 were down 2.25 points, or

0.08% and Nasdaq 100 e-minis NQcv1 remained unchanged.

Apple Inc AAPL.O , the second most valuable stock on the

Nasdaq, rose 0.2% in premarket trading after U.S. trade

regulators approved 10 out of 15 requests for tariff exemptions

by the iPhone maker. Apple supplier Micron MU.O , which makes computer memory

drives, was marginally higher.

Boeing .BA.N dropped 0.7% after a Reuters report that

European antitrust regulators were set to investigate the plane

maker's $4.75 billion bid for the commercial aircraft arm of

Brazil-based Embraer SA EMBR3.SA . Additionally, the chief of the U.S. Federal Aviation

Administration is set to detail progress on the Boeing 737 MAX

aircraft to international air regulators, who are divided about

returning the grounded jet to flight after two fatal crashes.

Juniper Networks Inc JNPR.N rose 2.3% as Needham upgraded

the network gear maker's stock to "buy".

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