Wall Street to open lower on dismal Macy's results

By Yashaswini Swamynathan

REUTERS - U.S. stocks were on track to open slightly lower on Thursday as Macy's weak earnings weighed on the retail sector.

Macy's shares plunged nearly 12 percent in premarket trading after the largest U.S. department store operator reported a quarterly profit that fell well below analysts' estimates. Shares of other department store operators, including Dillard's and J.C. Penney, also fell. Kohl's declined despite beating profit estimates.

"Retail is front-and-center because it has been a sore area for the market over the last year or two," said Adam Sarhan, chief executive officer at 50 Park Investments.

Dow e-minis were down 49 points, or 0.23 percent, with 15,248 contracts changing hands.

S&P 500 e-minis were down 6.75 points, or 0.28 percent, with 114,421 contracts traded.

Nasdaq 100 e-minis were down 19.25 points, or 0.34 percent, on volume of 21,944 contracts.

A report showed unemployment claims unexpectedly fell last week, pointing to a rapidly tightening labor market that could encourage the Federal Reserve to raise interest rates in June.

"From an investing standpoint, the market looks at the economy and so far there hasn't been any major disaster, so stocks will continue to rally," Sarhan said.

The Dow fell slightly, while the S&P 500 and the Nasdaq edged up on Wednesday as investors digested Comey's sacking and a batch of weak earnings. Nasdaq also closed at a record high.

Shares of Snapchat owner Snap Inc plunged 22 percent in heavy premarket trading after the company reported a slowdown in user growth and revenue in its first earnings report as a public company.

Straight Path plunged nearly 22 percent to $175.95 after agreeing to be bought by Verizon for $184 per share and terminated an earlier deal with AT&T.

Whole Foods was up 3.4 percent after the grocer shook up its board and appointed a new CFO.

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