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Futures down: Dow 0.68%, S&P 500 0.79%, Nasdaq 1.07%
May 6 (Reuters) - U.S. stock index futures were lower on
Tuesday after President Donald Trump's comments on potential
pharma tariffs renewed worries of the impact of a trade war,
while some downbeat corporate results also weighed on investor
sentiment.
Late on Monday, Trump said he plans to announce pharma
tariffs over the next two weeks, his latest on levies that have
rattled global financial markets over the past months.
The news offset optimism stemming from his order that aimed
to reduce the time taken for pharma manufacturing plant
approvals. Drugmakers Eli Lilly and Pfizer ( PFE ) were
flat to slightly lower in premarket trading.
The latest development follows Trump's tariffs on
foreign-made movies that were announced on Sunday. Wall Street
closed lower on Monday, with the benchmark S&P 500 snapping a
nine-session winning streak.
Ford Motor ( F ) was the latest to suspend its annual
outlook on Monday, joining a host of companies that shelved
their forecasts in April. The automaker also flagged a hit of
about $1.5 billion from the levies, sending its shares down 2.6%
in premarket trading.
Tariff-driven uncertainty has led consumers, businesses and
even the U.S. Federal Reserve to embrace a wait-and-watch mode
as they struggle to gauge the impact of the levies and find ways
to navigate them.
The Trump administration suggested last week that potential
deals with trading partners were underway, but markets have seen
no concrete results on that front.
The latest tariffs on the film and pharma industries are
undermining the "likely misplaced" optimism that markets feel
about the U.S. striking trade deals in the near future, said
Marc Ostwald, chief economist, ADM Investor Services
International.
At 05:30 a.m. ET, Dow E-minis were down 279 points,
or 0.68%, S&P 500 E-minis were down 44.75 points, or
0.79%, and Nasdaq 100 E-minis were down 214.25 points,
or 1.07%.
The Fed starts its 2-day meeting on Tuesday, with the
central bank widely expected to stay put on interest rates.
Comments from policymakers will be scrutinized for any clues
that suggest their stance on monetary policy easing this year.
"We see little market-moving information emerging ... with a
steady-as-she-goes payroll print for April, stable inflation
numbers and prospects of engaging in trade deals, this should
keep the Fed in wait-and-see mode for now," BNP Paribas analysts
said.
Traders see about 79 basis points of policy easing by the
end of 2025, with the first trim coming only in July, according
to data compiled by LSEG.
Aircraft parts maker Transdigm ( TDG ), hotel operator
Marriott ( MAR ) and Marathon Petroleum ( MPC ) are among the
companies reporting before the bell.
Data analytics firm Palantir's shares were down
8.2% after the company's in line profit and modest revenue beat
disappointed investors.
DoorDash ( DASH ) was down 1% after the meal delivery firm
said it will buy Deliveroo ( DROOF ) in a deal valuing the British
rival at about 2.9 billion pounds ($3.86 billion).
($1 = 0.7505 pounds)