US STOCKS-Wall St set for muted open after big corporate results; Honeywell dips

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Updates prices before markets open

By Shashwat Chauhan and Sukriti Gupta

Feb 6 (Reuters) - Wall Street was on track for a flat opening on Thursday as investors evaluated earnings from companies including Honeywell and markets awaited U.S. President Donald Trump's next move on trade restrictions and other federal policies.

Shares of industrial and aerospace giant Honeywell HON.O fell 3.5% after it said it would split into three independently listed companies and forecast downbeat sales and profit for 2025.

Drugmaker Eli Lilly LLY.N rose 1.4% after forecasting annual profit largely above estimates, while Coach-parent Tapestry TPR.N jumped 16.5% after it raised its annual sales and profit forecast.

Amazon.com AMZN.O, which is set to report after markets close, is under pressure to deliver on lofty cloud computing expectations.

At 08:32 a.m. ET, Dow E-minis 1YMcv1 were up 35 points, or 0.08%, S&P 500 E-minis EScv1 were up 11.5 points, or 0.19%, and Nasdaq 100 E-minis NQcv1 were down 1.25 points, or 0.01%.

Markets saw a dismal start to the week when Trump announced sweeping trade tariffs over the weekend, but suspended the levies on goods from Mexico and Canada on Monday for a month.

Although many uncertainties remain under Trump's new administration, Wall Street was relieved that things were not worse, particularly with regard to counter-tariffs against the United States from Beijing. MKTS/GLOB

"There's so many moving parts with the new administration and new executive orders every day... it doesn't surprise me that the market has been vacillating between optimism and pessimism since (the start of the year)," said Peter Andersen, founder of Andersen Capital Management.

Federal Reserve Vice Chair Philip Jefferson said overnight that he was content to keep interest rates steady until policymakers had a better sense of the net effects of the Trump administration's policies on tariffs, immigration, deregulation and taxes.

Traders do not expect the Fed to make a move on interest rates in its next meeting in March, but a cut is widely anticipated in June, according to the CME's FedWatch.

Analysts have broadly estimated that Trump's tariff plans could spur domestic inflation and likely slow the Fed's pace of rate cuts.

Meanwhile, the number of Americans filing new applications for unemployment benefits last week stood at 219,000, compared to an estimated 213,000, according to economists polled by Reuters.

The crucial January nonfarm payrolls report is due on Friday.

All three major indexes closed higher in a choppy session on Wednesday, bringing the S&P 500 .SPX about 1% away from its all-time high.

U.S.-listed shares of Arm Holdings ARM.O dropped 5% after the chip-tech provider said it would no longer meet the top end of its previous full-year forecast, despite topping current-quarter expectations.

Qualcomm QCOM.O fell 5% after the chip designer's executives said its lucrative patent-licensing business would not see sales growth this year after a license agreement with Huawei Technologies [RIC:RIC:HWT.UL] expired.

Ford Motor F.N lost 5.2% after the automaker forecast up to $5.5 billion in losses in its electric-vehicle and software operations this year.

Skyworks Solutions SWKS.O plunged 28% after the Apple supplier forecast declines in revenue in its mobile segment and projected current-quarter profits below estimates.