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US STOCKS-Wall Street set for weak open as Trump, Hong Kong sour mood

Published 11/11/2019, 15:08
Updated 11/11/2019, 15:09
© Reuters.  US STOCKS-Wall Street set for weak open as Trump, Hong Kong sour mood
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* Trade-sensitive, U.S.-listed Chinese stocks fall

* Qualcomm, Cisco drop after brokerage downgrades

* Walgreens jumps on record buyout approach report

* Futures down: Dow 0.39%, S&P 0.39%, Nasdaq 0.38%

(Adds comment, updates market action)

By Arjun Panchadar

Nov 11 (Reuters) - Wall Street's main indexes were set to

retreat at the open on Monday as comments by President Donald

Trump dampened expectations around a U.S.-China trade deal,

while escalating violence in Hong Kong added to investor

worries.

Hopes of a "phase one" deal to end the damaging 16-month

trade war and largely upbeat corporate earnings have sparked a

rally that helped the three major stock indexes close at record

highs on Friday.

But Trump said on Saturday that the United States would only

make a deal if it was the "right deal" for America, adding that

the talks had moved more slowly than he would have liked.

Trade-sensitive stocks Caterpillar Inc CAT.N , Advanced

Micro Devices Inc AMD.O , Micron Technology Inc MU.O and

Intel Corp INTC.O shed about 1% each in premarket trading.

U.S.-listed Chinese stocks also fell.

Continuing violence in Hong Kong also hit sentiment after

police shot and wounded a protester in the 24th straight week of

pro-democracy unrest in the Chinese-ruled territory.

"You have China involved in two major variables now, which

seems to be causing some nervousness," said Andre Bakhos,

managing director at New Vines Capital LLC in Bernardsville.

"During times like these, the markets are going to be

volatile and erratic, especially after coming off all time

highs."

The third-quarter earnings season is drawing to a close on a

positive note, with nearly three quarters of the 446 S&P 500

companies that have reported results so far topping profit

estimates, according to Refinitiv data. The numbers, however,

reflect significantly lowered analysts' forecasts.

Attention will now shift to economic data, as well as

comments from Federal Reserve Chair Jerome Powell later this

week.

At 8:53 a.m. ET, Dow e-minis 1YMcv1 were down 107 points,

or 0.39%. S&P 500 e-minis EScv1 were down 12 points, or 0.39%

and Nasdaq 100 e-minis NQcv1 were down 31.75 points, or 0.38%.

Walgreens Boots Alliance Inc WBA.O jumped 5.6% after

Bloomberg reported KKR & Co had formally approached the

drugstore giant for what could be the biggest-ever leveraged

buyout. Among other stocks, Qualcomm Inc QCOM.O fell 2.4% after

Morgan Stanley downgraded the chipmaker to "equal-weight" from

"overweight".

Shares of Cisco Systems Inc CSCO.O dropped 1.4% as Piper

Jaffray cut its rating on the network gear maker to "neutral"

from "overweight".

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