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Futures down: Dow 0.27%, S&P 500 0.31%, Nasdaq 0.46%
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Cisco ( CSCO ) gains after raising FY forecasts
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UnitedHealth ( UNH ) down after report firm facing criminal probe
(Updates before markets open)
By Shashwat Chauhan and Pranav Kashyap
May 15 (Reuters) - Wall Street's main indexes were on
track to open lower on Thursday as euphoria from the U.S.-China
tariff truce waned, while UnitedHealth's ( UNH ) stock was pressured
following a report that the DoJ was investigating the health
insurer for fraud.
UnitedHealth Group ( UNH ) dropped 7.3% after the Wall
Street Journal reported that the U.S. Department of Justice was
conducting a criminal investigation into the company for
possible Medicare fraud. The insurer said it had not been
informed of a criminal probe by federal prosecutors.
Walmart ( WMT ) will have to start raising prices later this
month due to the high cost of tariffs, executives said, even as
the retail giant's U.S. comparable sales surpassed expectations
in the first quarter. Its shares were trading flat.
At 08:46 a.m. ET, Dow E-minis were down 115 points,
or 0.27%, S&P 500 E-minis were down 18.5 points, or
0.31%, and Nasdaq 100 E-minis were down 97.5 points, or
0.46%.
Speaking on the day, U.S. Federal Reserve chair Jerome
Powell said central bank officials felt they needed to
reconsider the key elements around jobs as well as inflation in
their current monetary policy approach.
In economic data, U.S.
retail sales
growth slowed in April, while a Labor Department report
showed the producer price index for final demand fell 0.5% for
the same month, compared to an expectation of a 0.2% rise.
On an annual basis, producer prices came in at 2.4%
versus an estimate of 2.5%.
"This is not enough to shift the scales for the Fed on
its own," said Jan Nevruzi, U.S. rates strategist at TD
Securities.
"Policy from the government's side has been changing
rapidly, so on the back of that they're willing to give these
economic figures (time) to develop."
The data dump follows a relatively tame consumer price
reading earlier this week, indicating that consumer prices
rebounded moderately last month.
In results-driven moves, Cisco Systems ( CSCO ) gained 2.9%
after the networking-equipment maker raised its annual forecasts
and named Mark Patterson its new CFO.
The week has proved to be a roller-coaster ride for stocks,
as equities surged on Monday and Tuesday after the United States
and China agreed to a 90-day pause on their heated tariff
dispute.
These initial advances pushed the S&P into positive
territory for the year, a first since late February, although
the index still hovers about 4% below its all-time highs.
However, the rally hit a roadblock in the last session as
markets sought fresh catalysts. The S&P 500 eked out marginal
gains, while the Dow finished in the red.
Many megacap and growth stocks - which had enjoyed strong
gains earlier in the week - pulled back. Nvidia's ( NVDA )
shares fell 0.8% and Tesla lost 1.8%.
Other major movers included Foot Locker ( FL ), which soared
83.2% after rival Dick's Sporting Goods agreed to buy
the footwear retailer for $2.4 billion.
Top oil producers Chevron ( CVX ) and Exxon Mobil ( XOM )
dropped about 1% each as oil prices slid around 3% on
expectations of a U.S.-Iran nuclear deal that could result in
sanctions easing.