*

Futures off: Dow 0.32%, S&P 500 0.18%, Nasdaq 0.10%

*

Walmart ( WMT ) hikes annual forecast; shares drop

*

Coty ( COTY ) falls on weak U.S. spending forecast

*

Boeing ( BA ) gains as report says company to sell up to 500 jets

to

China

(Updates with results from Walmart ( WMT ))

By Johann M Cherian and Sanchayaita Roy

Aug 21 (Reuters) - U.S. stock index futures edged lower

on Thursday, as investors analyzed big-box retailer Walmart's ( WMT )

quarterly results for clues about the health of the American

consumer, ahead of the Federal Reserve's three-day conference in

Jackson Hole.

Walmart ( WMT ) raised its fiscal year sales and profit

forecasts, driven by strong demand from shoppers across all

income levels, who have turned to the world's largest retailer

amid rising product costs. However, shares of the retailer fell

2.5% in premarket trading.

The company has implemented minimal price hikes compared to

competitors and promised to maintain low prices, as well as

stocked up on affordable discretionary products to draw in more

customers.

Investors are also trying to gauge how U.S. tariffs would

impact holiday sales later this year, after reports from other

retailers such as Target ( TGT ) and Home Depot ( HD ) earlier

this week had painted a mixed picture.

The week also witnessed a sharp decline in technology stocks

such as Nvidia ( NVDA ), AMD, Palantir ( PLTR ) and Meta signaling investor fears

that the equities, which have soared since April lows, are now

overvalued, while Washington's growing interference in the

sector has also raised alarms.

The selloff could also be a result of investors paring back

their stock exposure during a traditionally rocky period for

equities, according to the Stock Trader's Almanac.

"Equities could be more at risk of volatility amid this

week's selloff in AI-related stocks on the back of renewed

doubts about AI valuations," said Raffi Boyadjian, lead market

analyst at brokerage XM.

"Although dip buyers have stepped in to stabilize the

market, it's too early to rule out a further slump in mega-cap

tech stocks."

In premarket trading, Nvidia ( NVDA ), Advanced Micro

Devices ( AMD ) and Palantir ( PLTR ) were marginally up, while

Meta slipped 0.3%.

At 07:17 a.m. ET, Dow E-minis were down 145 points,

or 0.32%, S&P 500 E-minis were down 11.25 points, or

0.18% and Nasdaq 100 E-minis were down 22.25 points, or

0.10%.

Boeing ( BA ) gained 1.5% after a report suggested the plane

maker was in talks to sell as many as 500 jets to China.

Among other market movers, Coty ( COTY ) slumped 20% after

the beauty products maker forecast a drop in current-quarter

sales on weak U.S. spending.

The Fed's annual symposium is expected to kick off on

Thursday, with Powell scheduled to speak on Friday at 10 a.m.

ET. Traders are looking for any commentary from Chair Jerome

Powell that would signal an interest rate cut in September

following recent job market weakness.

Minutes from the central bank's July meeting showed on

Wednesday that policymakers had struck a cautious tone and

expect the current interest rates to be not far above the

neutral level - where economic activity is neither stimulated

nor constrained.

Traders have pared back odds of a 25-basis-point interest

rate cut in September to 79% from 99.9% last week, according to

data compiled by LSEG.

A weekly report on jobless claims, a private report on

business activity and remarks from Atlanta Fed President Raphael

Bostic, are also expected on Thursday.