US STOCKS-Wall St heads lower as trade deal optimism fades

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* Mnuchin sees extra tariffs in Dec if deal not signed
* China seeking more talks before signing deal - BBG
* Apple, chipmakers down slightly premarket
* Delta Air Lines falls 1% after Stephens cuts rating
* Futures down: Dow 0.29%, S&P 0.29%, Nasdaq 0.31%

(Adds comments, details; updates prices)
By Sagarika Jaisinghani
Oct 14 (Reuters) - Wall Street was set to fall for the first
time in four sessions on Monday on signs there was more hard
work to be done before a partial trade deal with China announced
by President Donald Trump on Friday could be sealed.
The S&P 500 and Dow Jones indexes ended Friday with their
first weekly gain in a month after the U.S. President announced
an accord he said would see both sides ease the tit-for-tat
measures that have hammered global growth this year. Trump, however, acknowledged the agreement could still
collapse and a handful of media reports and comments from
Treasury Secretary Steven Mnuchin left investors feeling less
upbeat about what had really been achieved. Shares of companies with a sizeable exposure to China,
including Apple Inc AAPL.O , Nvidia Corp NVDA.O , Advanced
Micro Devices Inc AMD.O and Micron Technology Inc MU.O ,
slipped slightly in premarket trading after soaring on Friday.
The iShares Phil Semiconductor ETF SOXX.O was set to open down
about 0.5%.
Treasury Secretary Mnuchin said in a CNBC interview that he
had "every expectation" that if a U.S.-China trade deal was not
in place by Dec. 15, additional tariffs would be imposed,
although he said he expected a deal to be agreed by then.
"If the Chinese want to keep talking, I think the Trump
administration is willing to have them talk, but on Dec. 15
there will be new tariffs," said John Brady, senior vice
president at R.J. O'Brien & Associates in Chicago.
At 8:54 a.m. ET, Dow e-minis 1YMcv1 were down 78 points,
or 0.29%. S&P 500 e-minis EScv1 were down 8.5 points, or 0.29%
and Nasdaq 100 e-minis NQcv1 were down 24.25 points, or 0.31%.
Investors will now be looking at third-quarter earnings to
gauge the impact of the trade conflict and a sluggish domestic
economy on corporate America.
The reporting season kicks off on Tuesday, with the biggest
U.S. banks expected to report a 1.2% decline in earnings due to
falling interest rates, a raft of unsuccessful stock market
flotations and macroeconomic tensions. Bank of America Corp BAC.N , Citigroup Inc C.N , JPMorgan
Chase & Co JPM.N were down between 0.3% and 0.5% in premarket
trading. The S&P 500 bank index .SPXBK had logged its best day
in a month on Friday.
Overall, analysts are forecasting a 3.2% decline in profit
for S&P 500 companies for the quarter from a year earlier, based
on IBES data from Refinitiv.
Shares of oil majors Exxon Mobil Corp XOM.N and Chevron
Corp CVX.N fell between 0.5% and 0.7%, tracking a 2% fall in
oil prices. O/R
Fastenal Co FAST.O was down 2.5% after two brokerages
downgraded the stock. The company had logged its best day in
three decades on Friday after reporting strong results.
Delta Air Lines Inc DAL.N fell 1.1% after Stephens cut its
rating on the stock to "equal-weight" from "overweight", citing
rising costs. It also cut its price target to $57 from $75.
Shares of U.S. construction and engineering company AECOM
ACM.N were an outperformer, rising 7.7% after it agreed to
sell its management services unit to private equity firms
Lindsay Goldberg and American Securities for about $2.4 billion.