* Futures: Dow up 0.03%, S&P 500 down 0.4%, Nasdaq down 1%

* UnitedHealth ( UNH ) rises after 2026 profit forecast raise

* GE Aerospace falls despite lifting 2026 forecast

(Updates before market open)

By Ragini Mathur and Avinash P

July 16 (Reuters) - The S&P 500 and the Nasdaq were set for

a lower open on Thursday as chip stocks weakened again, while

investors parsed fresh economic data for clues on the health of

the economy.

Semiconductor stocks extended losses from the previous

session, when investors rotated into megacap technology names

and banks after strong results from major lenders.

U.S.-listed shares of TSMC fell 3.9% in premarket

trading, even after the advanced AI chipmaker reported a 77%

jump in second-quarter profit that topped market expectations.

Memory-chip makers were among the biggest decliners, with

Western Digital ( WDC ), Seagate Technology ( STX ) and Micron

Technology ( MU ) down 7.2%, 5.7% and 5%, respectively.

Chip stocks were earlier among the biggest beneficiaries of

this year's rally, as optimism around AI spending by

hyperscalers helped drive Wall Street to record highs.

The benchmark S&P 500 has risen more than 10% this

year and remains close to its June record closing high, leaving

the rally vulnerable to any disappointment.

Investors parsed June retail sales datathat showed only a

marginal rise as lower gasoline prices weighed on receipts at

service stations. Still, bargain-hunting consumers continued to

support underlying spending.

"Slower headline retail sales growth is actually positive,

mainly because it reflects lower gasoline prices, not weaker

consumer demand," said Bill Adams, chief U.S. economist at Fifth

Third Commercial Bank.

"The report is constructive for second-quarter real GDP."

Separately, weekly jobless claims fell to 208,000 for the

week ended July 11, below economists' expectations of 217,000

and down from 216,000 in the prior week.

At 08:46 a.m. ET, Dow E-minis were up 18 points, or

0.03%, and S&P 500 E-minis were down 28.5 points, or

0.37%. Nasdaq 100 E-minis were down 307.5 points, or

1.03%.

The latest in a slate of upbeat quarterly results,

UnitedHealth ( UNH ) raised its 2026 profit forecast, sending

shares of the healthcare giant up 6.8% and keeping Dow futures

afloat.

Peers Humana and Centene ( CNC ) gained 4.4% and

3.5%, respectively.

The main three U.S. indexes rose for a second straight

session on Wednesday as this week's benign inflation reportsfor

June reduced worries over tighter Federal Reserve policy.

Markets are currently pricing in about 88% likelihood that

the Fed will stay on hold at this month's monetary policy

meeting, according to CME's FedWatch tool.

A strong start to the second-quarter earnings season has

also underpinned sentiment, although geopolitical risks remained

in focus as U.S.-Iran tensions simmered.

Iran has asked Yemen's Houthi movement to stand ready to

close the Red Sea oil route if the U.S. strikes Iranian power

infrastructure, sources told Reuters, posing a fresh threat to

global energy supplies.

United Airlines fell 3.4% as a renewed surge in oil

prices weighed on its third-quarter and full-year profit

outlooks.

GE Aerospace dipped 2.9%, despite the jet-engine

maker lifting its 2026 profit forecast.

Netflix ( NFLX ) is scheduled to report its after the

market's close.

(Reporting by Ragini Mathur and Avinash P in Bengaluru; Editing

by Maju Samuel and Devika Syamnath)