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Shares of the department store chain jumped 13.6% in premarket
trading as it entered exclusive talks with retail store operator
Franchise Group Inc over a potential sale that would value it at
nearly $8 billion.
Megacap growth stocks retreated, pressured by U.S. Treasury
yields, which hovered near 3-1/2-week highs ahead of inflation
data on Friday. Tesla Inc fell 1.4% and Microsoft Corp 0.8%.
A hot reading on the consumer price index could bolster
expectations that the Fed will continue to aggressively hike
rates in the second half of this year, at a time when labor
market is buoyant and consumers spending remain resilient.
Money markets are expecting 50-basis points rate increases next
week and in July, and possibly in September too.
"There is quite a bit of uncertainty at the moment in terms of
inflation and the growth outlook and until investors have a
better idea of how high interest rates will go, equities are
likely to struggle," said Raffi Boyadjian, lead investment
analyst at brokerage XM.
World shares also fell as a surprise 50-basis-point rate
increase in Australia raised concern over policy tightening,
while oil prices hovered just below $120 a barrel on expected
recovery in China demand.
U.S. stocks ended a choppy session slightly higher in the
previous session, helped by gains in Amazon.com Inc and other
megacap growth shares.
At 6:29 a.m. ET, Dow e-minis were down 172 points, or 0.52%, S&P
500 e-minis were down 25.5 points, or 0.62%, and Nasdaq 100
e-minis were down 107.75 points, or 0.85%.
The CBOE volatility index rose for the third straight day and
was last up at 25.64 points.
(Reporting by Devik Jain in Bengaluru; Editing by Arun Koyyur)
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