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The
No. 1 U.S. home improvement chain dropped 3.8% in premarket
trading after its fourth-quarter comparable sales fell short of
estimates on higher supply-chain costs and weak demand due to
inflation.
Investors will be focusing on retail giant Walmart Inc's results
due later in the day.
At 6:34 a.m. ET, Dow e-minis were down 264 points, or 0.78%, S&P
500 e-minis were down 30.75 points, or 0.75%, and Nasdaq 100
e-minis were down 110.25 points, or 0.89%.
The U.S. stock market got a lift this year from its worst annual
showing in more than a decade in 2022, as investors were hopeful
that the central bank's rate hiking cycle was nearing its end.
However, recent economic data points to a resilient economy with
inflation far from the Fed's 2% target, raising bets for two or
three more 25 basis point hikes and lower chances of rate cuts
at year-end.
Money market participants see the benchmark level peaking to a
5.3% in July, and staying near those levels throughout the year.
Yield on the U.S. benchmark 10-year Treasury note edged higher,
in turn pressuring rate-sensitive growth stocks.
Apple Inc, Amazon.com Inc, Microsoft Corp and Google-parent
Alphabet Inc fell between 1% and 1.4% in premarket trading as
yield on the benchmark 10-year Treasury note climbed.
Traders find government bonds as a safe alternative to
investments in riskier assets like megacap firms.
In a bright spot, Meta Platforms Inc added 2.0% after the
Facebook parent said it is testing a monthly subscription
service called Meta Verified, which will let users verify their
accounts using a government ID and get a blue badge.
(Reporting by Johann M Cherian and Medha Singh in Bengaluru;
Editing by Saumyadeb Chakrabarty)
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