US STOCKS-Futures fall on concerns over U.S.-China trade fallout

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* Futures down: Dow 0.35%, S&P 0.37%, Nasdaq 0.49%

By Medha Singh
July 9 (Reuters) - U.S. stock futures fell on Tuesday as
investors worried over a hit to earnings from the prolonged
U.S.-China trade war and receding hopes of a sharp 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.
RBC Capital Markets downgrade of 3M Co MMM.N to "sector
perform" on macro pressures from China, auto and electronics
added to the downbeat sentiment. The industrial conglomerate's
shares fell 1.3% 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 0.4%.
Chipmakers, including Micron Technology Inc MU.O , Broadcom
Inc AVGO.O and Intel Corp INTC.O and Nvidia Corp NVDA.O
were down between 0.6% and 1%.
Stocks have retreated from their recent highs since a robust
June jobs report on Friday tempered expectations of an
aggressive 50 basis point rate cut by the Fed at its July policy
meeting.
The market forecast 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. In premarket trade, the chances
were 95% and 5%, respectively.
Focus this week will be on the 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 7:09 a.m. ET, Dow e-minis 1YMcv1 were down 95 points,
or 0.35%. S&P 500 e-minis EScv1 were down 11 points, or 0.37%
and Nasdaq 100 e-minis NQcv1 were down 38.5 points, or 0.49%.
Banking stocks will be watched on Tuesday as the Fed
conducts a conference to discuss the effectiveness of its stress
tests for large lenders, as the U.S. central bank considers
changes to its critical post financial crisis tool.
PepsiCo Inc PEP.O rose 1.1% after the beverage maker beat
analysts' estimates for quarterly revenue and profit, benefiting
from demand for its sodas and Lays 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 scheduled
to report later in the week.
Profits at S&P 500 companies is expected to dip 0.1% from a
year earlier, according to Refinitiv IBES data.