Wall Street set to open lower after S&P 500's five-day rally

By Abhiram Nandakumar

REUTERS - Wall Street looked set to open lower on Tuesday as investors book profits after the S&P 500's best 5-day run since 2011.

All three major U.S. indexes have gained since Friday when a weak U.S. jobs report led to expectations that the Federal Reserve would not raise interest rates this year, meaning the era of near-zero interest rates would continue.

Up to Monday's close, the S&P had gained 5.6 percent over the past five days.

"We're just digesting some of the gains and that is part of the reason why markets are just slightly lower," said Paul Nolte, director of trading at Conifer Securities in New York.

At 8:27 a.m. ET (1227 GMT), S&P 500 e-minis were down 4 points, or 0.2 percent, with 173,235 contracts traded. Nasdaq 100 e-minis were down 12 points, or 0.28 percent, on volume of 26,636 contracts. Dow e-minis were down 13 points, or 0.08 percent, with 30,032 contracts changing hands.

Crude oil prices rose more than 1 percent, adding to their gains from Monday. [O/R]

The U.S. trade gap widened more than expected to $48.33 billion in August, from its five-month low of $41.9 billion in July, data from the Commerce Department showed.

German industrial orders fell unexpectedly in August, data released on Tuesday showed, adding to worries that waning demand, especially from China and other emerging markets, would spread across the globe.

Worries about slowing global growth and its effect on economic policy and corporate results will be on investors minds as the U.S. corporate earnings season begins this week.

S&P 500 companies are expected to report a 4.2 percent fall in earnings in the third quarter, the biggest decline in six years, according to Thomson Reuters data.

Shares of Pepsi rose about 3 percent to $98.50 premarket after it reported better-than-expected third-quarter results and raised its forecast for the year.

DuPont rose 6.3 percent to $54.51 after the company said CEO Ellen Kullman would step down.

PMC-Sierra jumped 31.2 percent to $10.09 after Apple supplier Skyworks said it would buy the chipmaker for $2 billion. Skyworks was up 2 percent at $83.50.

Brewer Molson Coors fell 2.2 percent to $82.4 after Bloomberg reported that partner SABMiller had rejected AB Inbev's informal buyout offer. Molson Coors would have benefited from opportunities created by the merger.

Yum Brands reports results after the close.

San Francisco Federal Reserve President John Williams is scheduled to speak on economic outlook at 5:30 p.m. ET (2130 GMT).

(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Savio D'Souza)