US STOCKS-Futures drop as Cisco disappoints; trade talks eyed

Reuters

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    * Futures dip: Dow 0.09 pct, S&P 0.17 pct, Nasdaq 0.37 pct 

    By Medha Singh
    May 17 (Reuters) - U.S. stock futures dipped on Thursday
after Cisco's disappointing forecast, while investors fretted
about rising U.S. Treasury yields and looming trade talks
between the United States and China.
    The world's two economic powerhouses will resume trade
negotiations over the next two days and officials from both
sides have recently signaled that they are looking for a deal.
 urn:newsml:reuters.com:*:nS6N1S201G  urn:newsml:reuters.com:*:nL3N1SM04K
    Japan is considering tariffs on U.S. exports worth $409
million in retaliation against U.S.-imposed steel and aluminum
import tariffs, according to media reports.  urn:newsml:reuters.com:*:nL3N1SO140
    Shares of Cisco Systems  CSCO.O  fell 3.9 percent in
premarket trading after the company's disappointing forecast
indicated that its transition to a software-focused business was
a work in progress.  urn:newsml:reuters.com:*:nL3N1SN5XI
    Walmart  WMT.N  was up 1.1 percent after the retailer's
quarterly ecommerce sales growth slowed year-over-year, but was
higher than the previous quarter.  urn:newsml:reuters.com:*:nL3N1SN6AM
    The retailer's results come after Macy's  M.N  strong report
helped power Wall Street on Wednesday and pushed the small-cap
Russell 2000  .RUT  to a record high.
    At 7:23 a.m. ET, Dow e-minis  1YMc1  were down 22 points, or
0.09 percent. S&P 500 e-minis  ESc1  were down 4.5 points, or
0.17 percent and Nasdaq 100 e-minis  NQc1  were down 25.75
points, or 0.37 percent.
    Yields on the 10-year Treasury notes  US10YT=RR  eked out a
fresh 7-year highs, continuing a climb that was first triggered
by Tuesday's retail sales data that signaled the U.S. economy is
on a stronger footing in the second quarter.  US/ 
    Coca-Cola  KO.N  rose 1 percent after Barclays upgraded the
stock to "overweight."
    NetEase  NTES.O  dropped 9 percent after the Chinese
internet company's first-quarter profit missed Wall Street
estimates.  urn:newsml:reuters.com:*:nL3N1SO3WE
    On the economic front, data at 8:30 a.m. ET is expect to
show initial jobless claims rose 215,000 last week from 211,000
the week before.

 (Reporting by Medha Singh in Bengaluru; Editing by Anil
D'Silva)
 ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780,
outside U.S. +91 80 6749 1130; Reuters Messaging:
medha.singh.thomsonreuters.com@reuters.net))

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