Wall Street headed for lower open after Trump says he's 'ready' to put tariffs on all $505 billion of Chinese goods imported to the US

BY THE NUMBERS

Futures were lower this morning, with the Dow, S&P 500 and Nasdaq hovering near breakeven for the week. Weekly gains would be the third straight for all three, but momentum is somewhat negative with the Dow coming off its first loss in six sessions. (CNBC)

* Dow futures fall 120 points after Trump tells CNBC he's 'ready to go' to $500 billion in tariffs on China

Microsoft (MSFT) stock was 3 percent higher premarket after it earned an adjusted $1.13 per share for its latest quarter, beating consensus estimates by five cents. Revenue also topped Street forecasts, and the company gave an upbeat current quarter forecasts as well as it continues to grow its cloud computing business.

There are no economic reports on today’s calendar, but there is one Fed official speaking — St. Louis Fed President James Bullard, who has a morning speech in Glasgow, Kentucky. Bullard is not a voting member of the FOMC for 2018.

Earnings reports out this morning include Baker Hughes (BHGE), General Electric (GE), Honeywell (HON), Kansas City Southern (KSU), Regions Financial (RF), Schlumberger (SLB), Stanley Black & Decker (SWK), State Street (STT), SunTrust (STI) and VF Corp (VFC). There are no earnings reports scheduled after today’s closing bell.

* General Electric earnings: 19 cents a share, vs expected EPS of 17 cents (CNBC)

TRUMP INTERVIEW WITH CNBC

In an interview with CNBC's Joe Kernen, President Donald Trump expressed frustration with the Federal Reserve and said the central bank could disrupt the economic recovery. Presidents rarely intercede when it comes to the Fed.

Trump indicated he is willing to put tariffs on all $505 billion of Chinese goods that the U.S. imports. The rhetoric ramps up the U.S-China trade war another step, although each country has issued just $34 billion in tariffs so far.

Trump vowed that if his dealings with Russian leader Vladimir Putin don't "work out, I'll be the worst enemy he's ever had." Trump also blasted his predecessor, President Barack Obama, for having been a "total patsy" for Russia.

Trump said his administration's new workers' council will help fill 3.7 million jobs in the U.S. He signed an executive order, creating the National Council for the American Worker, intended to beef-up training and education for American workers.

* Watch President Trump's full interview with CNBC

IN THE NEWS TODAY

The White House said Trump plans to invite Putin to visit Washington in the fall, stunning intelligence officials. The announcement came as the White House spent a third day trying to explain statements made by Trump after the Helsinki meeting. (NY Times)

Trump's tariffs are introducing a wildly unpredictable issue into the midterm elections due to their impact on states with critical Senate races. The issue puts GOP candidates in a weird position and could turn off voters if they criticize Trump. (Axios)

A flurry of unexpected tornadoes swept through central Iowa yesterday, injuring at least 17 people, flattening buildings in three cities and forcing the evacuation of a hospital. Additional funnels were reported. No deaths have been reported. (AP)

Eleven people are dead and several others injured after an amphibious duck boat capsized on Table Rock Lake in Missouri. Recovery efforts continued after dark, with some passengers still unaccounted for. (USA Today)

The NFL’s two-month-old national anthem policy is on hold after the Associated Press reported that Miami Dolphins players who protest on the field during the anthem could be suspended for up to four games under a team policy issued this week.

Groupon (GRPN) accused IBM (IBM) of shaking down other tech companies for patent fees, as a court case involving the two companies continued in federal court. IBM is suing Groupon for $167 million, saying the daily deals company infringed internet technology patents. (Reuters)

STOCKS TO WATCH

Intuitive Surgical (SIRG) beat estimates by 26 cents with adjusted quarterly profit of $2.76 per share, and the surgical instrument maker’s revenue also beat expectations as it shipped nearly 33 percent more of its flagship da Vinci surgical systems compared to a year earlier.

Skechers (SKX) fell five cents shy of Street forecasts with quarterly profit of 36 cents per share, despite record sales for the footwear company that were slightly above estimates. Earnings results were hurt by legal costs as well as unfavorable currency swings.

Skyworks Solutions (SWKS) reported adjusted quarterly profit of $1.64 per share, four cents above estimates, with the wireless chip-maker’s revenue also above forecasts. Skyworks also gave upbeat current quarter guidance, and announced a 19 percent dividend increase. Its upbeat report is also helping shares of competitors like Broadcom (AVGO) and Qorvo (QRVO).

Tesla (TSLA) battery supplier Panasonic said it had suspended relations with a Canadian cobalt supplier, after saying it was unable to determine how much of the cobalt used in batteries came from Cuba. Cuba is currently subject to U.S. sanctions.

Capital One (COF) reported quarterly profit of $3.71 per share, well above the consensus estimate of $2.63, and the credit card issuer also saw revenue above Wall Street forecasts. Capital One’s results were boosted by an increase in consumer spending and smaller credit losses.