US STOCKS-Wall St set to open lower on concerns over trade war fallout

* Focus on Fed press meet on banks stress test
* 3M falls after RBC downgrade
* PepsiCo rises after results beat
* Futures down: Dow 0.34%, S&P 0.33%, Nasdaq 0.33%

(Adds quote, details; Updates prices)
By Medha Singh
July 9 (Reuters) - Wall Street was set for a lower open on
Tuesday as investors fretted over a hit to earnings from the
protracted U.S.-China trade dispute and lowered expectations of
a big rate cut by the Federal Reserve later this month.
In the latest indication of the U.S.-China trade dispute
hurting businesses, German chemicals giant BASF BASFn.DE
warned of a 30% fall in adjusted annual profit. A downgrade of 3M Co MMM.N to "sector perform" by RBC
Capital Markets on macro pressures from China, auto and
electronics added to the downbeat sentiment. The industrial
conglomerate's shares fell 1.6% in premarket trade.
China-exposed stocks slipped, with Boeing Co BA.N , the
single largest U.S. exporter to China, dipping 0.2% ahead of
release of its orders and deliveries for the second quarter.
Caterpillar Inc CAT.N fell 0.6%.
Chipmakers, including Qualcomm Inc QCOM.O , Advanced Micro
Devices Inc AMD.O , Intel Corp INTC.O and Nvidia Corp
NVDA.O , were down between 0.5% and 0.9%.
Stocks have retreated from their record closing highs since
a robust June jobs report on Friday tempered expectations of an
aggressive 50 basis point rate cut by the Fed.
"There is certainly nervousness over ... the fact that no
(trade) agreement has been reached nor seems that close and that
the recent jobs report calls into question how quickly the Fed
is likely to lower rates," said Rick Meckler, partner, Cherry
Lane Investments in New Vernon, New Jersey.
"Without the two items being favorably resolved, it's hard
for the market to push to even higher levels when it has gained
already so much this year."
The market had expected a 75% chance of a 25-basis-point cut
and a 25% chance of a 50-basis-point cut a week ago, according
to CME Group's FedWatch tool. That stood at 95% and 5%,
respectively, on Tuesday.
Focus this week will be on Fed chief Jerome Powell's remarks
at his two-day testimony before the Congress, starting
Wednesday. Also due on Wednesday is the central bank's June
policy meeting minutes.
At 8:27 a.m. ET, Dow e-minis 1YMcv1 were down 92 points,
or 0.34%. S&P 500 e-minis EScv1 were down 9.75 points, or
0.33% and Nasdaq 100 e-minis NQcv1 were down 26 points, or
0.33%.
Banking stocks will be watched on Tuesday as the Fed holds a
conference to discuss the effectiveness of its stress tests for
large lenders.
Network gear maker Cisco Systems Inc CSCO.O dropped 1.3%
on deal to buy optical component maker Acacia Communications Inc
ACIA.O for $2.84 billion in cash. Acacia shares soared 37.4%.
PepsiCo Inc PEP.O gained 0.9% after the beverage maker
beat analysts' estimates for quarterly revenue and profit,
benefiting from demand for its sodas and chips, as well as its
sparkling waters. Second-quarter earnings is expected to start in earnest next
week, with Citigroup C.N kicking off results for big U.S.
lenders on Monday and FANG-member Netflix Inc NFLX.O reporting
later in the week.
Profits at S&P 500 companies are expected to dip 0.2% from a
year earlier, according to Refinitiv IBES data.