Premarket Movers: Yahoo rises, Nvidia falls

Continued reports that Yahoo Inc. is lining up allies in its attempt to fend off Microsoft Inc.'s pursuit of its online search engine business sent shares of the Internet pioneer higher in premarket trading Thursday.

According to unnamed sources cited by The Wall Street Journal, Yahoo has reopened discussions with media conglomerate Time Warner Inc. about a tie-up that would essentially block Microsoft's recent takeover bid.

Shares of Yahoo rose 2.4 percent to $21.37, while Microsoft shares fell 17 cents to $25.71.

Shares of Family Dollar Stores rose 3.8 percent to $22.80 early Thursday, after the discount-store operator reported fiscal third-quarter earnings above expectations and raised its fourth-quarter and full-year outlook.

Nvidia Corp. saw its shares lose a quarter of their value before the opening bell, after the graphics chip maker said it was lowering its second-quarter revenue outlook. Two analysts slashed their price targets over concerns for the company's margins. Shares fell 25.6 percent to $13.42.