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Wall Street set to open lower as bond yields rise, Cisco weighs


By Medha Singh

(Reuters) - Wall Street was on pace to open lower on Thursday, weighed down by yields hitting fresh seven-year highs and Cisco's disappointing forecast, while looming Sino-U.S. talks added to the jitters.

Ten-year U.S. government Treasury yield, a key driver of global borrowing costs, hit a high of 3.1 percent as more expensive pointed to faster inflation and followed some upbeat U.S. retail sales numbers.

prices hit $80 per barrel for the first time since November 2014 on concerns that Iranian exports could fall due to renewed U.S. sanctions and reduce supply in an already tightening market.

"There's a lot of chatter that the 10-year is somehow going to explode to the upside, that's why its getting everybody's attention," Kim Forrest, at in

"There is a lot of worry out there that might be reflected in the market ... and is the icing on the cake."

The and will resume negotiations over the next two days to resolve their differences over trade, and officials from both sides have recently signaled that they are looking for a deal.

is considering tariffs on U.S. exports worth $409 million in retaliation against U.S.-imposed and aluminum import tariffs, according to

Shares of Cisco, a component of all three major U.S. indexes, fell 3.9 percent in premarket trading after the company's disappointing forecast indicated its transition to a business was a work in progress.

At 8:46 a.m. ET, Dow were down 37 points, or 0.15 percent. were down 5.75 points, or 0.21 percent and were down 36.75 points, or 0.53 percent.

rose 1.7 percent after the retailer posted a rebound in its U.S. business and beat profit and revenue expectations.

However, tumbled 10.4 percent after its same-store sales missed estimates and the company warned its could post a loss this year.

J.C. Penney's results come a day after strong report helped drive the small-cap index to a record high.

rose 0.8 percent after upgraded the stock to "overweight."

dropped 8.8 percent after the Chinese company's first-quarter profit missed Wall Street estimates.

On the economic front, data showed new applications for U.S. jobless benefits increased more than expected last week, but the number of Americans on unemployment rolls fell to the lowest since 1973, pointing to diminishing labor market slack.

(Reporting by in Bengaluru; Editing by Anil D'Silva)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 17 2018. 18:50 IST