* Trump warns of duties on $300 bln worth of Chinese goods
* ECB cuts its growth forecasts for 2020, 2021
* Energy stocks gain on firming oil prices
* AMD up on Morgan Stanley upgrade
* Dow rises 0.21%, S&P up 0.12%, Nasdaq off 0.14%
(Changes comment, adds details; Updates prices)
By Medha Singh and Amy Caren Daniel
June 6 (Reuters) - U.S. stocks eked out gains in choppy
trading on Thursday, as hopes of an interest rate cut outweighed
fears of a flare up in U.S.-China trade tensions after comments
from President Donald Trump.
Trump said he would decide on more China tariffs "probably
right after the G20" meeting later this month, which followed
his threat overnight to levy duties on "at least" another $300
billion worth of Chinese goods. The trade-sensitive industrial sector .SPLRCI fell 0.49%,
the biggest decliner among the four major sectors lower.
"We're seeing more of what we had before that in terms of a
more prolonged and protracted approach to trade policy
resolution," said Peter Kenny, founder, Kenny's Commentary LLC
and Strategic Board Solutions LLC in New York.
"We are going to continue to run up against this wall of
cynicism, which is being reflected in risk-off, until we see
something that is really data driven and significant in terms of
policy accomplishment relative to trade that can shift that
narrative."
Weighing on sentiment was the European Central Bank's
marginally cut to the region's growth forecasts for the next two
years, acknowledging the risk that the slowdown will be longer
and deeper than expected.
Markets have been roiled by worries of a global economic
slowdown triggered by the ongoing U.S.-China trade spat and the
pervasive uncertainty has led top Federal Reserve officials,
including Chairman Jerome Powell, to hint at a rate cut.
If current levels hold, the S&P would clock the third
straight session of gains.
At 10:59 a.m. ET, the Dow Jones Industrial Average .DJI
was up 54.08 points, or 0.21%, at 25,593.65, and the S&P 500
.SPX was up 3.50 points, or 0.12%, at 2,829.65. The Nasdaq
Composite .IXIC was down 10.78 points, or 0.14%, at 7,564.70.
The energy sector .SPNY , which was the hardest hit by the
recent escalation in trade tensions, rose 1.03%, the most among
the major S&P sectors, as oil prices gained. O/R
Oil majors Exxon Mobil Corp XOM.N and Chevron Corp CVX.N
provided the biggest support with a gain of 1.4%.
Advanced Micro Devices Inc AMD.O rose 5.6%, to the top of
S&P 500, after Morgan Stanley upgraded the chipmaker's stock to
"equal-weight" from "underweight".
Declining issues outnumbered advancers for a 1.19-to-1 ratio
on the NYSE and for a 1.69-to-1 ratio on the Nasdaq.
The S&P index recorded 65 new 52-week highs and two new
lows, while the Nasdaq recorded 45 new highs and 90 new lows.