Updated from 7:03 a.m.

NEW YORK (TheStreet) -- Here are 10 things you should know for Thursday, May 7:

1. -- U.S. stock futures are dropping on Thursday as investors digest Fed Chair Janet Yellen's remark that stock prices are "quite high."

European stocks are in retreat, with the U.K. facing a general election while pessimism surrounds talks on the Greek bailout next week. TeleCity (TLEIY) posted large gains.

2. -- The economic calendar in the U.S. on Thursday includes the Challenger Job-Cut Report on corporate layoffs at 7:30 a.m., initial jobless claims data at 8:30 a.m., Gallup payroll-to-population numbers at 8:30 a.m., the Bloomberg Consumer Comfort Index at 9:45 a.m., and consumer credit data at 3 p.m.

3. -- U.S. stocks on Wednesday closed lower as investors recoiled from Federal Reserve Chair Janet Yellen's warning that the stock market seems overvalued.

The Dow Jones Industrial Average (DIA) decreased 0.48% to 17,841.98. The S&P 500 (SPY) fell 0.45% to 2,080.15. The Nasdaq (QQQ) dropped 0.4% to 4,919.64.

4. -- Janet Yellen, the Federal Reserve chair, said in a joint speech with International Monetary Fund Managing Director Christine Lagarde that stock prices are "quite high" and valuations were also "on the high side." Yellen also said that when interest rates go up after six long years of zero rates, it may cause some volatility in the market.

Yellen refrained from indicating when that interest rate hike would come.

5. -- Tesla Motors (TSLA) said in its earnings report that it had shipped more than 10,000 cars in the quarter -- up 55% and better than analysts expected -- although it had also widened its losses for the quarter to $154 million. Revenue was up 51%. The electric car company plans to deliver 55,000 cars this year, but it is burning through its cash reserves, which are down to $1.5 billion from $2.4 billion a year ago. The company also recently announced plans to sell batteries for home energy storage.

Although in after-hours trading Tesla shares initially rallied on the earnings report, now the stock is falling 4.5% in premarket trading.

6. -- Data center company Equinix (EQIX) is making an offer to buy U.K. rival TeleCity (TLEIY) for about £2.3 billion ($3.5 billion), to be paid about 54% in cash and 46% in Equinix shares. TeleCity's U.K. shares jumped 18.8% on news of the offer.

TeleCity was planning to create a new joint company with Interxion Holding (INXN), a Dutch data center operator. That company would be worth more than £3 billion, 55% of which would be owned by TeleCity.

In premarket trading, Equinix stock was rising by 2.8%.

7. -- Burger-flipper Wendy's (WEN) will sell 640 company-owned stores to franchisees over the next two years, the company announced. The company has more than 6,500 stores worldwide. Wendy's will also sell a bun factory in Ohio. The moves are expected to raise nearly $500 million in cash for the company.

Wendy's stock rose 7.2% Wednesday on the news, but was dropping 1.7% in premarket trading.

8. -- Dallas-based chicken-wing chain Wingstop is planning an initial public offering, according to a filing with the Securities and Exchange Commission. The company will be listed on the Nasdaq under the ticker WING. Even after the company goes public, investor Roark Capital will hold more than 50% voting power over the stock.

Wingstop has 712 restaurants, and 97% are franchised. The company is valued at roughly $500 million.

9. -- Data on jobless claims comes in Thursday morning at 8:30 a.m. Unemployment is at 15-year lows, according to recent numbers. Econoday estimates that the report will say 280,000 new jobless claims were filed last week, above last week's 262,000, but still quite low by recent standards.

If the economy shows continued signs of strength, the Fed may move to raise interest rates sooner rather than later.

10. -- On the earnings calendar, Alibaba (BABA), Priceline (PCLN) and SeaWorld Entertainment (SEAS) report before the opening bell. Freshpet (FRPT), Galena Biopharma (GALE), Mannkind (MNKD) and Sprouts Farmers Market (SFM) report after the closing bell.

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