US STOCKS-Wall Street set to open higher after strong retail sales data

* Walmart gains after Q2 comp sales beat
* Cisco tumbles after forecast disappoints
* U.S. retail sales surge in July in boost to economy
* Futures up: Dow 0.42%, S&P 0.41%, Nasdaq 0.40%

(Adds comment, updates prices)
By Amy Caren Daniel
Aug 15 (Reuters) - U.S. stock index futures rose in volatile
trading on Thursday, as strong July retail sales data and
Walmart's upbeat results eased some concerns about the economy
slipping into recession, while mixed reports on the trade
dispute kept investors on edge.
The bounce in shares comes after the blue-chip Dow index
posted its worst day this year, as recession fears gripped the
market after the U.S. Treasury yield curve inverted for the
first time in 12 years. US/
Sentiment got a boost after the Commerce Department said
retail sales rose 0.7% in July, much higher than the
expectations of a 0.3% rise, as consumers bought a range of
goods even as they cut back on motor vehicle purchases. "The July number shows that the weakest economic data that
people keep pointing out to for a global slowdown is coming from
outside the U.S. not inside the U.S.," said Randy Frederick,
vice president of trading and derivatives for Charles Schwab in
Austin.
Futures initially dived after China's finance ministry said
on Thursday it would take necessary counter-measures against the
latest tariffs on $300 billion of Chinese goods. However in a separate statement, a Chinese foreign ministry
spokeswoman said, "We hope the U.S. will meet China halfway, and
implement the consensus of the two heads of the two countries in
Osaka," drove a turnaround in shares.
"It doesn't matter where we are right now. The number of
variables affecting this market are increasing," said Andre
Bakhos, managing director at New Vines Capital LLC in
Bernardsville, New Jersey.
Walmart Inc WMT.N shares rose 6.8% after the retailer
reported second-quarter U.S. comparable sales that beat
estimates and boosted its earnings forecast for the year.

In contrast, Dow component Cisco Systems Inc CSCO.O
dropped 7.5% after the Dow component blamed the bruising trade
war for poor quarterly forecasts. The network gearmaker said prices of some items sold by the
retailer have climbed due to tariffs on Chinese imports, but it
is managing that pressure by negotiating with suppliers and
sourcing from alternate supply bases.
At 8:43 a.m. ET, Dow e-minis 1YMcv1 were up 108 points, or
0.42%. S&P 500 e-minis EScv1 were up 11.75 points, or 0.41%
and Nasdaq 100 e-minis NQcv1 were up 30.25 points, or 0.4%.
Trade worries have plagued financial markets for at least a
year fuelling fears of recession, and traders have raised their
bets on three rate cuts this year including one in September to
sustain a decade-long bull market run on Wall Street.
The benchmark S&P 500 .SPX is now 6.6% away from its
all-time high hit in July.