US STOCKS-Wall Street set to open lower after Huawei report adds to trade concerns

  • Reuters
  • Stock Market News
US STOCKS-Wall Street set to open lower after Huawei report adds to trade concerns
Credit: © Reuters.

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* U.S. may delay permitting firms to trade with Huawei

* UK GDP contracts unexpectedly in Q2

* Symantec gains after Broadcom confirms talks

* Uber slides after reporting record loss

* Futures down: Dow 0.50%, S&P 0.60%, Nasdaq 0.80% (Adds comment, details; Updates prices)

By Medha Singh

Aug 9 (Reuters) - U.S. stocks were set to open lower on Friday, as investors grappled with fresh trade tensions, political turmoil in Italy and a surprise contraction in Britain's economy.

Shares of chipmakers and other tariff-sensitive stocks came under pressure after a report that Washington was delaying a decision about allowing some trade between U.S. companies and China's telecom equipment maker Huawei again. Technology MU.O , Nvidia Corp NVDA.O and Intel Corp INTC.O fell between 0.7% and 1.7% in premarket trading, while Apple Inc AAPL.O slid 0.8%.

In Europe, Italy's ruling League party Deputy Prime Minister Matteo Salvini called for early elections; while Britain's economy shrank for the first time since 2012, raising concerns as the country gears up to leave the EU in October. uncertainty in the eurozone is adding an additional variable that the market has to juggle around with. That, coupled with the GDP numbers and the trade war, is giving investors an indigestion," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.

"Until we get some sort of tangible answers to what the (Trump) administration is going to do with China, this is going to be a overhang on the market, creating plenty of sharp swings."

U.S. stocks roared back on Thursday, recording their best one-day percentage surge in two months and helping the S&P 500 .SPX hold on to slims gains in what has been a turbulent week for the markets dominated by a symbolic drop in China's currency.

At 8:37 a.m. ET, Dow e-minis 1YMcv1 were down 132 points, or 0.5%. S&P 500 e-minis EScv1 were down 17.75 points, or 0.6% and Nasdaq 100 e-minis NQcv1 were down 61.5 points, or 0.8%.

Investors looking for safety in turbulent times helped the defensive sectors this week, with consumer staples .SPLRCS , utilities .SPLRCU and real estate .SPLRCR indexes faring better than most other major S&P 500 sectors.

Following a near 12% jump on Thursday, Symantec Corp SYMC.O gained 1.9% after chipmaker Broadcom Inc AVGO.O confirmed it would buy the antivirus software maker's enterprise security unit for $10.7 billion in cash. Technologies Inc UBER.N slipped 8.7% after reporting a record $5.2 billion loss and revenue that fell short of Wall Street targets as growth in its core ride-hailing business slowed. Therapeutics NKTR.O shares plunged 36% after the drug developer flagged manufacturing issues with its experimental cancer drug bempeg.

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