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Ford, GM fall after tariff threats

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Wells Fargo ( WFC ) gains after report asset cap likely to be

lifted

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Amgen ( AMGN ) slips as keenly awaited obesity drug data

disappoints

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Futures: Dow down 0.31%, S&P 500 up 0.22%, Nasdaq up 0.26%

(Updates before market open)

By Johann M Cherian and Purvi Agarwal

Nov 26 (Reuters) -

The benchmark S&P 500 and the Nasdaq were set to build on

recent gains on Tuesday, as investors parsed Donald Trump's

tariff pledges on top trade partners of the U.S. and awaited

minutes from the Federal Reserve's latest meeting.

President-elect Trump said he would impose a 25% conditional

tariff on Canadian and Mexican imports that could violate a

free-trade deal he negotiated during his previous term. He also

outlined "an additional 10% tariff, above any additional

tariffs" on imports from China, raising the risk of trade wars.

At 8:32 a.m. ET, Dow E-minis were down 140

points, or 0.31%, S&P 500 E-minis were up 13.25 points,

or 0.22% and Nasdaq 100 E-minis were up 54.5 points, or

0.26%.

Automakers such as Ford and General Motors ( GM )

-that have highly integrated supply chains across Mexico, the

U.S. and Canada - lost 2.2% and 4.7%, respectively in premarket

trading.

However, some analysts said that the threats might just be

used as a negotiating tool.

"At this point it's probably too early to tell. But I

don't think it's something that is over and I wouldn't be

shocked if we turn the new year and all of a sudden this becomes

a big issue," said Joe Saluzzi, co-head of equity trading at

Themis Trading.

Yields on longer-dated Treasury bonds, that had slipped in

the previous session following Scott Bessent's selection as

incoming Treasury secretary, rose and kept a lid on equities'

gains.

The S&P 500 touched a record high on Monday and

logged its sixth-straight session of gains. Investors also

rotated into small-cap companies, that helped the Russell 2000

index scale an all-time high, surpassing the previous

record hit three years ago.

On Tuesday, futures tracking the Russell dropped

0.4%.

On the data front, a consumer confidence survey is due at

10:00 a.m. ET and post-noon markets will assess minutes from the

central bank's meet earlier this month which could throw light

on the Fed's outlook on interest rate cuts. Top on the radar

this week is the personal consumption expenditure report due on

Wednesday.

Analysts say Trump's trade and fiscal policies, though

seen as a positive for companies and economic growth, could

stoke inflation pressures and slowdown the Fed's monetary policy

easing cycle.

Minneapolis Federal Reserve President Neel Kashkari,

typically seen as hawkish on monetary policy, said he is open to

cutting interest rates again next month.

Traders have recently swayed in placing their bets on the

central bank's move in December and currently favor a 25-basis

point interest rate cut by a 59.4% chance, as per the CME

Group's FedWatch Tool.

Among others, Wells Fargo ( WFC ) gained 1.4% after Reuters

reported the bank's $1.95 trillion asset cap could likely be

lifted next year.

Dow component Amgen ( AMGN ) lost 11.6% after its

experimental obesity drug

fell short

of expectations. Rival Eli Lilly rose 4.3% after U.S.

President Joe Biden was set to

propose expanding

Medicare and Medicaid coverage for anti-obesity drugs.

Kohl's slid 18.6% after

forecasting a bigger drop

in annual sales than previously expected.