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Nikola ( NKLA ) falls after filing for bankruptcy protection
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Payments processor Shift4 to buy Global Blue ( GB ) in $2.5-bln
deal
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Futures down: Dow 0.16%, S&P 500 0.11%, Nasdaq 0.06%
(Updates before markets open)
By Shashwat Chauhan and Sukriti Gupta
Feb 19 (Reuters) -
Wall Street's main indexes were set to open flat on
Wednesday on worries over proposed U.S. auto tariffs and ahead
of minutes from the Federal Reserve's January meeting, while
electric-truck maker Nikola ( NKLA ) tumbled after going bankrupt.
Trump said on Tuesday that he intended to impose auto
tariffs "in the neighborhood of 25%", along with similar duties
on semiconductor and pharmaceuticals imports.
Trump's tariffs have raised concerns if they would fuel
inflation in the U.S. and weigh on the Fed's stance on rate cuts
this year.
Minutes of the U.S. central bank's January policy
meeting - where voting members elected to let
interest rates stand and Fed Chair Jerome Powell said there
would be no rush to cut them again until inflation and jobs data
made it appropriate - are scheduled to be released at 2 p.m. ET.
"With the risk of inflation moving higher as well as
where financial conditions are, the Fed is really not in a hurry
to cut rates," said Charlie Ripley, senior investment strategist
for Allianz Investment Management.
Investors will look for hints on the Fed's rate plans for
the year in the minutes, in light of last week's mixed consumer
and producer prices data coupled with a sharp drop in retail
sales, which had sent Treasury yields lower.
Traders currently see at least one 25-basis-point rate cut
and a 44% chance of an additional lowering by December,
according to LSEG data.
Since his inauguration in January, Trump has imposed a 10%
tariff on all imports from China, on top of existing levies. He
also announced and delayed for a month 25% tariffs on goods from
Mexico and non-energy imports from Canada.
"Talking about tariffs is not the same as implementing
tariffs, and I think we've seen a lot of talk over the past
month or so and not a lot on the implementation side of things,"
Ripley said.
The S&P 500 eked out an all-time closing high in the
last session, lifting tech heavyweights Microsoft ( MSFT ) and
Nvidia ( NVDA ).
At 08:17 a.m. ET, Dow E-minis were down 72 points,
or 0.16%, S&P 500 E-minis were down 6.75 points, or
0.11%, and Nasdaq 100 E-minis were down 14.25 points, or
0.06%.
Nikola ( NKLA ) fell 47.4% after saying it had filed for
Chapter 11
bankruptcy protection.
Retail giant Walmart's ( WMT ) results, a bellwether for how
the American consumer is faring, are due later this week.
Arista Networks ( ANET ) dropped 4.9% despite the cloud
computing provider forecasting first-quarter revenue above Wall
Street estimates.
Bumble slid 19.5% after the dating-app operator
forecast first-quarter revenue below analysts' estimates.
Specialty chemicals company Celanese lost 15.3% after
reporting a quarterly loss.
Payments processor Shift4 fell 9.3% after its
fourth-quarter results and news that the company has agreed to
buy Global Blue ( GB ), in a deal valued at $2.5 billion. Shares
of Global Blue ( GB ) jumped 18%.
Analog Devices ( ADI ) gained 5% after the chipmaker
beat first-quarter profit and revenue estimates.