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Newell Brands slips on lower annual forecast
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Lyft tanks 31.4% on weak outlook
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Futures down: Nasdaq 0.80%, S&P 0.50%, Dow 0.36%
(Adds comments, details; updates prices)
By Shreyashi Sanyal and Johann M Cherian
Feb 10 (Reuters) - U.S. stock indexes were set to open
lower on Friday, with megacap growth companies under pressure
after Treasury yields extended gains, while shares of Lyft
plunged as the ride-hailing firm forecast current-quarter profit
well below estimates.
Wall Street's main stock indexes were set to clock declines
for the week, which was dominated by hawkish commentary from
U.S. Federal Reserve officials and earnings reports more than
half of the S&P 500 constituent companies.
The Nasdaq Composite eyed its first weekly fall
this year, tracking declines of nearly 2%.
Yields on the benchmark 10-year Treasury note rose to their highest in more than a month and weighed on U.S. stock indexes, following an auction of 30-year bonds that saw weak demand. Rising Treasury yields put valuations of growth stocks under pressure. Apple Inc , Amazon.com Inc , Microsoft Corp and Tesla Inc were down between 0.6% and 1.5% in early trading. "If you get 4% in Treasuries risk free, why would you risk any money in the stock market?" said Adam Sarhan, chief executive at 50 Park Investments. "It definitely impacts the NASDAQ 100 type stock because they're very sensitive to interest rates."
At 8:32 a.m. ET, Dow e-minis were down 122 points, or 0.36%, S&P 500 e-minis were down 20.5 points, or 0.5%, and Nasdaq 100 e-minis were down 99.25 points, or 0.8%. Lyft Inc plummeted 31.4% after it also lowered prices, raising concerns it was falling behind bigger rival Uber Technologies Inc . Uber shares dropped 3.6%. Sharpie maker
Newell Brands Inc slid 6.4% on lower-than-expected annual forecasts, while stating Chief Executive Ravi Saligram would retire.
Intel Corp is weighing a $1.5-billion expansion of its chip
testing and packaging plant in Vietnam, two sources familiar
with the matter told Reuters. Shares of the chip behemoth dipped
0.6%.
Also on the radar, a preliminary reading of the
University of Michigan Consumer Sentiment survey is expected at
10:00 a.m. ET to gauge if consumer mood looked up from its
two-year low of 64.6 last month on easing prices. A Reuters poll
of economists showed levels of 65 in February.
(Reporting by Shreyashi Sanyal and Johann M Cherian in
Bengaluru; Editing by Shounak Dasgupta and Saumyadeb
Chakrabarty)
