US STOCKS-Wall St set for muted open as trade worries persist

  • Reuters
  • Stock Market News
US STOCKS-Wall St set for muted open as trade worries persist
Credit: © Reuters.

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* Trump says "not yet ready" to make a deal with China

* Activision Blizzard gains after Goldman upgrade

* Global Payments falls after deal to buy peer Total System

* Futures: Dow up 0.13%, S&P flat, Nasdaq up 0.20%

(Adds comment, updates prices)

By Amy Caren Daniel

May 28 (Reuters) - Wall Street was set for a subdued open on Tuesday after an extended weekend, as investors remained on edge after President Donald Trump signaled that the United States and China were far from a trade deal.

Trump on Monday said he was "not yet ready" to make a deal with China but he expected one in the future. The back-and-forth between the two sides has sparked worries that the protracted trade war would lead to a global economic slowdown.

"The market is basically in a limbo. There happens to be a wall of worries that continues to grow," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"It's essentially the same worries that have been in the markets for a while now. People realize that this is not an easy trade war to win and there could be some real negative consequences from this."

The uncertainty in markets has sent investors seeking for safe-haven assets, with yields on the U.S. 10-year notes US10YT=RR hitting its lowest level since October 2017.

Investors are also concerned that China might opt to weaponize its holdings of more than $1.1 trillion worth of U.S. Treasuries to retaliate against the tariffs imposed on Chinese imports. benchmark S&P 500 index .SPX as of Friday's close was about 4% off its record high hit on May 1, while the blue-chip Dow Jones Industrial index .DJI posted its fifth straight week of decline.

At 8:18 a.m. ET, Dow e-minis 1YMc1 were up 33 points, or 0.13%. S&P 500 e-minis ESc1 were up 1.25 points, or 0.04% and Nasdaq 100 e-minis NQc1 were up 14.75 points, or 0.2%.

Among other stocks, Activision Blizzard Inc ATVI.O rose 3.3% in premarket trading after Goldman Sachs (NYSE: GS ) upgraded its stock to "buy" and said the videogame publisher would benefit from its recent game releases.

FedEx Corp (NYSE: FDX ) FDX.N fell 0.4% after Chinese telecoms equipment maker Huawei Technologies Co Ltd HWT.UL said it was reviewing its relationship with the U.S. package delivery company, after it diverted two parcels destined for Huawei addresses in Asia to the United States. Payments Inc GPN.N dropped 2.2% after the payment technology company said it would buy peer Total System Services Inc (NYSE: TSS ) TSS.N for about $21.5 billion in stock. Total System's shares rose 2.3%. report from the U.S. Conference Board due at 10 a.m. ET is expected to show the consumer confidence index rising to a reading of 130 in May from 129.2 in April.

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