US STOCKS-Wall St slips as Cisco drags, bond yields rise

Reuters

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    * 10-yr Treasury yields hit 7-yr high as oil tops $80
    * Cisco weighs on main indexes as forecast disappoints
    * Walmart and J.C. Penney drop after results 
    * Sino-U.S. trade talks resume on Thursday
    * Futures down: Dow 0.25 pct, S&P 0.07 pct, Nasdaq 0.11 pct

 (Updates to open)
    By Medha Singh
    May 17 (Reuters) - Wall Street's main indexes dropped on
Thursday as U.S. bond yields climbed to a seven-year high and
Cisco's forecast disappointed, while looming Sino-U.S. trade
talks added to the jitters.
    Shares of Cisco  CSCO.O  fell 3.6 percent and were the
biggest drag on all the three major indexes, after the company's
forecast indicated its transition to a software-focused business
was a work in progress.  urn:newsml:reuters.com:*:nL3N1SN5XI
    Also weighing was Walmart's  WMT.N  1.8 percent fall. The
stock was up in premarket trading after the retailer posted a
rebound in its U.S. e-commerce business and beat profit
estimates.  urn:newsml:reuters.com:*:nL2N1SO0B8
    Ten-year U.S. Treasury yields  US10YT=RR  hit a high of 3.1
percent as more expensive oil pointed to faster inflation and
followed some upbeat U.S. retail sales numbers.
    "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.  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
    At 9:52 a.m. EDT the Dow Jones Industrial Average  .DJI  was
down 61.23 points, or 0.25 percent, at 24,707.70, the S&P 500
 .SPX  was down 2.02 points, or 0.07 percent, at 2,720.44 and
the Nasdaq Composite  .IXIC  was down 8.43 points, or 0.11
percent, at 7,389.86.
    Six of the 11 main index groups were in negative territory.
    Leading the gainers was the energy sector  .SPNY , which
rose 0.9 percent after Brent crude  LCOc1  prices hit $80 per
barrel for the first time since November 2014.  O/R 
    Wells Fargo  WFC.N  dropped 1.3 percent, weighing on
financials  .SPSY , after the Wall Street Journal reported that
some bank employees altered information on business customers'
documents.
    J.C. Penney Co tumbled 6.7 percent after its same-store
sales missed estimates and the company warned its could post a
loss this year.  urn:newsml:reuters.com:*:nL3N1SN6AM
    Coca-Cola  KO.N  rose 1.4 percent after Barclays upgraded
the stock to "overweight."
    Advancing issues outnumbered decliners by a 1.54-to-1 ratio
on the NYSE. Advancing issues outnumbered decliners by a
1.51-to-1 ratio on the Nasdaq.
    The S&P index recorded 12 new 52-week highs and two new
lows, while the Nasdaq recorded 48 new highs and 11 new lows.

 (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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