US STOCKS-Wall St set to open lower as bond yields rise, Cisco weighs


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    * 10-yr Treasury yields hit 7-yr high as oil tops $80
    * Cisco drops after disappointing forecast
    * Walmart rises, J.C. Penny plunges after results 
    * Sino-U.S. trade talks resume on Thursday
    * Futures dip: Dow 0.15 pct, S&P 0.21 pct, Nasdaq 0.53 pct

 (Updates prices, adds investor comment)
    By Medha Singh
    May 17 (Reuters) - Wall Street was on pace to open lower on
Thursday, weighed down by U.S. Treasury yields hitting fresh
seven-year highs and Cisco's disappointing forecast, while
looming Sino-U.S. trade talks added to the jitters.
    Ten-year U.S. government Treasury yield  US10YT=RR , a key
driver of global borrowing costs, hit a high of 3.1 percent as
more expensive oil pointed to faster inflation and followed some
upbeat U.S. retail sales numbers.
    Oil 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, senior portfolio manager at Fort Pitt
Capital Group in Pittsburgh.
    "There is a lot of worry out there that might be reflected
in the market ... and trade is the icing on the cake."
    The United States and China 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.*:nS6N1S201G*: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.*:nL3N1SO140 
    Shares of Cisco  CSCO.O , 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
software-focused business was a work in progress.*:nL3N1SN5XI
    At 8:46 a.m. ET, Dow e-minis  1YMc1  were down 37 points, or
0.15 percent. S&P 500 e-minis  ESc1  were down 5.75 points, or
0.21 percent and Nasdaq 100 e-minis  NQc1  were down 36.75
points, or 0.53 percent.
    Walmart  WMT.N  rose 1.7 percent after the retailer posted a
rebound in its U.S. e-commerce business and beat profit and
revenue expectations.*:nL2N1SO0B8
    However, J.C. Penney Co tumbled 10.4 percent after its
same-store sales missed estimates and the company warned its
could post a loss this year.*:nL3N1SN6AM
    J.C. Penney's results come a day after fellow department
store operator Macy's  M.N  strong report helped drive the
small-cap Russell 2000 index  .RUT  to a record high.
    Coca-Cola  KO.N  rose 0.8 percent after Barclays upgraded
the stock to "overweight."
    NetEase  NTES.O  dropped 8.8 percent after the Chinese
internet company's first-quarter profit missed Wall Street
    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.*:nLNSHGEEDB

 (Reporting by Medha Singh in Bengaluru; Editing by Anil
 ((; within U.S. +1646 223 8780,
outside U.S. +91 80 6749 1130; Reuters Messaging:

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