US stocks set to open lower as trade concerns resurface

U.S. stocks were set to open lower on Tuesday, as trade concerns resurfaced and investors braced for the first quarterly earnings contraction since 2016. Global markets were on edge after the United States threatened to slap tariffs on hundreds of European goods on Monday as retaliation for subsidies given to Airbus, while expectations of another cut to the IMF's global growth forecasts added to worries. The European Union has begun preparations to retaliate over Boeing Co subsidies, an EU official said.

Boeing shares were down 0.8% in premarket trading ahead of its aircraft delivery and order numbers for March. Earnings begin in earnest, with Delta Air Lines Inc reporting on Wednesday followed by big U.S. lenders later this week. January-March profit for S&P 500 companies is expected to fall 2.3% from last year, according to Refinitiv data. "Investors are now wondering if companies are no longer growing their earnings, then how much do they want to pay for these earnings," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh. "The jobs numbers weren't necessarily as bad as most of us had thought but everybody is looking at earnings season to tell what individual companies are seeing in the future."

Despite jitters over earnings and economic growth, the benchmark S&P 500 is holding at its highest level since Oct. 9, closing just 1.6% away from an all-time high on Monday. At 8:42 a.m. ET, Dow e-minis were down 62 points, or 0.24%. S&P 500 e-minis were down 7 points, or 0.24% and Nasdaq 100 e-minis were down 19.75 points, or 0.26%. Among other movers, Walt Disney Co inched up 0.7% after Cowen and Co raised its rating on the company to "outperform", citing its strong pipeline of products. United States Steel Corp fell 4.5% after Credit Suisse downgraded the stock to "underperform". Pentair PLC plunged 9.4% after the water treatment company forecast full-year profit below expectations.