US STOCKS-Wall St set to drop on fear of new infection wave

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* Coty jumps after selling majority stake in unit
* Marriott drops as profit misses lowered estimates
* Cardinal Heath surges as pandemic drives sales
* Futures off: Dow 1.20%, S&P 1.24%, Nasdaq 0.97%

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By Medha Singh
May 11 (Reuters) - Wall Street's main indexes were set to
fall at the open on Monday after last week's rally, as investors
worried about a second wave of coronavirus infections with the
reopening of several economies.
Germany and South Korea reported a surge in new COVID-19
cases on Sunday, in an ominous sign for all countries beginning
to lift virus lockdowns.
"That's going to put water on the fire today," said Gerald
Sparrow, portfolio manager of the Sparrow Growth Fund in St.
Louis, Missouri.
"(Still), the difference now than four months ago is that
governments and health organizations have more specific plans.
The big tipping point is going to be if we can't come up with a
medicine to treat the virus."
Battered travel-related stocks, including Carnival Corp
CCL.N , Norwegian Cruise Line Holdings Ltd NCLH.N , American
Airlines Group Inc AAL.O and United Airlines Holdings Inc
UAL.O dropped more than 2% each in premarket trading.
Marriott International Inc MAR.O shed 2.5% as its
quarterly profit fell short of already drastically lowered
expectations, as bookings plunged. Hopes of a pickup in business activity powered a Wall Street
rally last week, with the Nasdaq .IXIC recouping all its
losses for 2020 as investors looked past dire economic data,
including a historic 20.5 million jobs wiped out in April.
However, the benchmark S&P 500 .SPX is still more than 13%
below its February record high and analysts have warned of
another selloff as macroeconomic data gets worse, foreshadowing
a deep and lasting global recession.
"We think it's likely a stretch for investors to chase the
move much higher from here," said Eoin Murray, head of
investment at Federated Hermes.
After financial markets began pricing in negative U.S.
interest rates for the first time ever last week, all eyes will
be on Federal Reserve Chair Jerome Powell's outlook on the
economy at a webcast event on Wednesday.
At 8:48 a.m. ET, Dow e-minis 1YMcv1 were down 291 points,
or 1.2%. S&P 500 e-minis EScv1 were down 36.25 points, or
1.24% and Nasdaq 100 e-minis NQcv1 were down 89 points, or
0.97%.
Cosmetics maker Coty Inc COTY.N jumped 12.5% after
agreeing to sell a majority stake in its professional beauty and
retail hair businesses to investment firm KKR KKR.N in a deal
valued at $4.3 billion. Drug distributor Cardinal Health Inc CAH.N jumped 8% as
the pandemic drove a surge in third-quarter sales, which topped
market estimates.