US STOCKS-Wall St set to open flat on auto tariff threat; Nikola plunges

Reuters
19 Feb
US STOCKS-Wall St set to open flat on auto tariff threat; Nikola plunges

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Nikola falls after filing for bankruptcy protection

Payments processor Shift4 to buy Global Blue in $2.5-bln deal

Futures down: Dow 0.16%, S&P 500 0.11%, Nasdaq 0.06%

Updates before markets open

By Shashwat Chauhan and Sukriti Gupta

Feb 19 (Reuters) - Wall Street's main indexes were set to open flat on Wednesday on worries over proposed U.S. auto tariffs and ahead of minutes from the Federal Reserve's January meeting, while electric-truck maker Nikola tumbled after going bankrupt.

Trump said on Tuesday that he intended to impose auto tariffs "in the neighborhood of 25%", along with similar duties on semiconductor and pharmaceuticals imports.

Trump's tariffs have raised concerns if they would fuel inflation in the U.S. and weigh on the Fed's stance on rate cuts this year.

Minutes of the U.S. central bank's January policy meeting - where voting members elected to let interest rates stand and Fed Chair Jerome Powell said there would be no rush to cut them again until inflation and jobs data made it appropriate - are scheduled to be released at 2 p.m. ET.

"With the risk of inflation moving higher as well as where financial conditions are, the Fed is really not in a hurry to cut rates," said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Investors will look for hints on the Fed's rate plans for the year in the minutes, in light of last week's mixed consumer and producer prices data coupled with a sharp drop in retail sales, which had sent Treasury yields lower.

Traders currently see at least one 25-basis-point rate cut and a 44% chance of an additional lowering by December, according to LSEG data.

Since his inauguration in January, Trump has imposed a 10% tariff on all imports from China, on top of existing levies. He also announced and delayed for a month 25% tariffs on goods from Mexico and non-energy imports from Canada.

"Talking about tariffs is not the same as implementing tariffs, and I think we've seen a lot of talk over the past month or so and not a lot on the implementation side of things," Ripley said.

The S&P 500 .SPX eked out an all-time closing high in the last session, lifting tech heavyweights Microsoft MSFT.O and Nvidia NVDA.O.

At 08:17 a.m. ET, Dow E-minis 1YMcv1 were down 72 points, or 0.16%, S&P 500 E-minis EScv1 were down 6.75 points, or 0.11%, and Nasdaq 100 E-minis NQcv1 were down 14.25 points, or 0.06%.

Nikola NKLA.O fell 47.4% after saying it had filed for Chapter 11 bankruptcy protection.

Retail giant Walmart's WMT.N results, a bellwether for how the American consumer is faring, are due later this week.

Arista Networks ANET.N dropped 4.9% despite the cloud computing provider forecasting first-quarter revenue above Wall Street estimates.

Bumble BMBL.O slid 19.5% after the dating-app operator forecast first-quarter revenue below analysts' estimates.

Specialty chemicals company Celanese CE.N lost 15.3% after reporting a quarterly loss.

Payments processor Shift4 FOUR.N fell 9.3% after its fourth-quarter results and news that the company has agreed to buy Global Blue GB.N, in a deal valued at $2.5 billion. Shares of Global Blue jumped 18%.

Analog Devices ADI.O gained 5% after the chipmaker beat first-quarter profit and revenue estimates.

US stocks trail global peers so far this year https://reut.rs/3X8drRV

(Reporting by Shashwat Chauhan and Sukriti Gupta in Bengaluru; Editing by Pooja Desai)

((Shashwat.Chauhan@thomsonreuters.com))

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