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The
lack of progress in talks to raise the $31.4 trillion borrowing
limit ahead of the June 1 deadline has weighed on Wall Street,
with its benchmark indexes ending the previous session sharply
lower.
Shorter-dated Treasury yields continued to rise, with yields on
the 1-month bond hitting another record high at 5.8920%, as
worries about a possible government debt default rise.
"Optimism over a debt ceiling deal is getting tired out as the
two parties are 'close on a number of issues' but we still
haven't got a deal," Mohit Kumar, chief financial economist at
Jefferies said in a note.
"Odds of a deal by end of this week or early next week are
looking good, but its politics, so accidents can happen."
Investors also await minutes from the Federal Reserve's May 2-3
meeting, due later in the day, to assess the central bank's
interest-rate path.
At 7:10 a.m. ET, Dow e-minis were down 124 points, or 0.37%, S&P
500 e-minis were down 14.75 points, or 0.35%, and Nasdaq 100
e-minis were down 48.5 points, or 0.35%.
Among early movers, Agilent Technologies Inc shares plunged 9.4%
in premarket trading after the company cut its annual sales and
profit forecasts.
Chipmaker Nvidia Corp dipped 1.0% ahead of its quarterly
earnings after markets close.
PacWest Bancorp rose 7.3% as the regional lender sold its
property lending division to real estate financing firm Roc360,
seeking to bolster confidence in its financial health.
Among mid-cap retail earnings, Kohl's Corp advanced 10.8% as the
department store chain reaffirmed its annual forecast even as
first-quarter sales missed estimates.
Urban Outfitters Inc jumped 11.0% as the apparel retailer posted
upbeat first-quarter results, boosted by strong demand and
leaner inventory levels.
VF Corp gained 2.9% after beating fourth-quarter profit and
sales estimates, helped by strong demand for its North Face
brand.
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru;
Editing by Vinay Dwivedi)
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