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* Futures down: Dow 0.14%, S&P 0.15%, Nasdaq 0.28%
By Akanksha Rana
Aug 22 (Reuters) - Wall Street's main markets were set to
edge lower on Thursday as the previous session's hints of a
skeptical Federal Reserve attitude to a new cycle of interest
rate cuts offset a handful of more bullish signs from U.S.
retailers.
The minutes from the U.S. central bank's meeting on July
30-31 showed policymakers deeply divided over their
quarter-point cut in rates but united in wanting to signal the
move was not on a preset path to further cuts. While traders are sticking to bets that the Fed will cut
again in September, money markets have now ruled out a
half-point move, and Fed Chair Jerome Powell's speech at an
annual gathering in Jackson Hole on Friday may prove crucial to
short-term sentiment. MMT/
While markets are on course to fall this month after a
two-week sell-off driven by concerns over the U.S.-China trade
war and its impact on global and U.S. growth, the signals for
Powell from the economy this week have been more bullish.
Strong results for retailers Target (NYSE:TGT) TGT.N , Lowe's LOW.N
and Nordstrom JWN.N on Wednesday were complemented by better
than expected purchasing manager surveys in Europe on Thursday.
U.S. surveys are due later, along with weekly jobless claims.
President Trump continues to press the Fed publicly to
reduce rates, but many analysts say the U.S. economy is far
further away from recession than some of its European rivals or
than the bond market at times in recent months has suggested.
"Without sounding like a broken record, the danger is most
definitely that Chairman Powell disappoints (on expectations he
will signal more rate cuts)," said Jeffrey Halley, senior market
analyst at online trading platform OANDA.
"It is hard to see Powell announcing or implying an
aggressive new easing cycle in isolation when just a month ago,
the FOMC was clearly very split as well."
Among stocks, shares of Nordstrom Inc (NYSE:JWN) jumped 9.3% in
premarket, as its results after the bell on Wednesday joined
Target and Lowe's in beating Wall Street profit estimates.
At 6:48 a.m. ET, Dow e-minis 1YMcv1 were down 36 points,
or 0.14%. S&P 500 e-minis EScv1 were down 4.5 points, or 0.15%
and Nasdaq 100 e-minis NQcv1 were down 21.5 points, or 0.28%.
Trade tensions, which stalled a rally in stocks at the start
of this month, continued to simmer as China said on Thursday it
hopes the United States will stop its wrong tariff action and
that any new tariffs would lead to escalation. The benchmark S&P 500 .SPX has fallen 3.4% from its record
high hit in late-July.