US STOCKS-Wall St set to open lower as aggressive rate cut hopes recede

* Apple falls as Rosenblatt downgrades to 'sell'
* Boeing slips as Saudi airline dumps MAX order
* Fed Chair Powell's semi-annual testimony on July 10-11
* Futures down: Dow 0.29%, S&P 0.23%, Nasdaq 0.36%

(Adds comment, details: Updates prices)
By Medha Singh
July 8 (Reuters) - Wall Street was set to open lower on
Monday, as investors scaled back bets of an aggressive interest
rate cut by the Federal Reserve later this month following a
solid June jobs report.
Hopes that the U.S. central bank would cut rates to counter
any hit to economic growth from a prolonged U.S.-China trade
dispute had helped Wall Street's main indexes rebound from a
slump in May and hit record closing highs last week.
While a rate cut is expected at the Fed's July 30-31
meeting, the surprisingly strong U.S. jobs data on Friday has
led traders to reassess how sharply the central bank would lower
key lending rates.
Bets of a 50 basis point cut have plunged to 1.8%, from
about 20% a week ago, according to CME Group's FedWatch program.
The market is carrying over some of the sentiment from
Friday, said Art Hogan, chief market strategist at National
Securities in New York.
"It's a very light catalyst day... I think the markets
should hold off until we here testimony from Chairman Powell."
Fed Chairman Jerome Powell's semi-annual testimony to the
U.S. Congress on July 10-11 will give investors an opportunity
to look for cues on the near-term monetary policy outlook. Also
on tap is the central bank's June policy meeting minutes,
scheduled for release on Wednesday.
"We're kind of in middle ground here with a real
contemplation of would you rather have a rate cut or an
improving economy," Hogan said.
At 8:35 a.m. ET, Dow e-minis 1YMc1 were down 78 points, or
0.29%. S&P 500 e-minis ESc1 were down 6.75 points, or 0.23%
and Nasdaq 100 e-minis NQc1 were down 28 points, or 0.36%.
Morgan Stanley's decision to cut exposure to global equities
due to misgivings about the ability of policy easing to offset
weaker economic data also weighed on sentiment.
The attention is now expected to turn to the start of the
second-quarter earnings season next week. Profits for S&P 500
companies are expected to dip 0.1% year-over-year, according to
IBES Refinitiv data.
Among stocks, Apple Inc's AAPL.O shares fell 1.5%
premarket after Rosenblatt Securities downgraded to "sell" from
"neutral", becoming the third brokerage with a bearish call on
stock.
Boeing Co's BA.N shares declined 1.5% after Saudi Arabian
budget airline flyadeal said it would not proceed with a
provisional $5.9 billion order for the planemaker's grounded 737
MAX aircraft, instead opting for a fleet of Airbus A320 jets.
"You're going to have an outsized Apple, Boeing impact on
the market because it's a quiet day otherwise," Hogan said.
Chip equipment makers dropped as D.A. Davidson & Co changed
its industry rating to "neutral". Shares of Applied Materials
Inc AMAT.O , Lam Research Corp LRCX.O and Ichor Holdings Ltd
ICHR.O fell between 1.6% and 3%.
Symantec Corp SYMC.O rose 5% after Jefferies said the
cybersecurity firm is a "logical financial acquisition" amid
reports Broadcom Inc AVGO.O in advanced talks for a deal.