* Yellen heads to Senate for banking committee hearing
* Cisco shares tumble after revenue warning
* Walmart falls, Kohl's shares slide after results
* Futures: Dow up 7 pts, S&P up 2 pts, Nasdaq down 8 pts
By Rodrigo Campos
NEW YORK, Nov 14 The Dow and S&P 500 were on
track to set fresh record highs at the open on Thursday,
extending gains from late in the previous session after the
release of remarks from Federal Reserve chair nominee Janet
Yellen, while a slide in Cisco shares weighed on Nasdaq futures.
Cisco Systems shares tumbled 12.7 percent in
premarket trading after it warned its revenue would dive as much
as 10 percent this quarter and keep contracting until after the
middle of 2014, due to a backlash against U.S. government spying
in emerging markets like China.
The Senate Banking Committee will hold a hearing at 10:00
a.m. EST (1500 GMT) on the nomination of the Fed's current vice
chair, Janet Yellen, to head the U.S. central bank. Yellen's
remarks, released Wednesday, were perceived by the market as
dovish and supportive of the policies that have helped the S&P
500 rally 24.9 percent so far this year.
"The focus is on Yellen's testimony and whether she will be
as dovish in the Q&A as she was in her written comments," said
Peter Cardillo, chief market economist at Rockwell Global
Capital in New York.
S&P 500 futures rose 2 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures edged up 7
points and Nasdaq 100 futures lost 8 points.
The Dow and the S&P 500 ended at record highs on Wednesday
as strong results from Macy's lifted consumer shares and
in anticipation of remarks by Janet Yellen, likely to become the
first woman to lead the Fed.
Wal-Mart shares fell 1.7 percent in premarket
trading after the world's largest retailer reported
lower-than-expected quarterly sales, hurt by an unexpected
decline in U.S. comparable sales and a competitive retail
Kohl's Corp shares dropped 8.1 percent in premarket
trading after the department store chain reported
weaker-than-expected third-quarter results as sales at stores
open for more than a year fell.
Futures had a muted reaction to data showing the number of
Americans filing new claims for unemployment benefits fell 2,000
to a seasonally adjusted 339,000, but claims for the prior week
were revised to show 5,000 more applications than previously
Overseas, data showed the euro zone economy grew at a slower
than expected 0.1 percent rate in the third quarter, which could
hurt appetite for equities.
Fairholme Capital Management proposed to buy the insurance
businesses of Fannie Mae and Freddie Mac, a
move that seeks to resolve the uncertain future of the mortgage