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By Shreyashi Sanyal

(Reuters) – Wall Street was set to open lower on Wednesday after warnings from Caterpillar and Texas Instruments rekindled worries about a global economic slowdown due to U.S.-China trade tensions.

Shares of Caterpillar Inc (N:) slid 4% and were the biggest decliners among Industrials in trading before the bell, as the company cut its yearly profit forecast on weak demand in China.

Trade tensions took a toll on chip industry bellwether Texas Instruments (O:), which fell 9% after it forecast current-quarter revenue below estimates.

Other chipmakers including Intel Corp (O:), Analog Devices Inc (O:) and Nvidia Corp (O:) fell between 2% and 3.5%.

Still, the earnings season has largely been upbeat, with over 80 of the 100 companies topping analysts’ estimates, according to Refinitiv data. But analysts still project the first earnings contraction since 2016.

The S&P 500 () is hovering near its record high on signs of progress in trade negotiations between the world’s top two economies.

At 7:25 a.m. ET, were down 98 points, or 0.37%. were down 9 points, or 0.3% and were down 19.5 points, or 0.25%.

A handful of healthcare companies rose on strong results. Drugmaker Alexion Pharmaceuticals (O:) jumped 5% after raising its full-year forecast.

Medical device makers Boston Scientific Corp (N:) and Thermo Fisher Scientific (N:) gained 3% each on beating quarterly profit estimates.

(This story corrects the spelling of company name in last paragraph)

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2019-10-23