Xcode IB can't resize a UILabel -- just shows mickey mouse hand

Question

I want to grab the tiny white square and drag it downward, but IB is showing the mickey mouse hand which won't click and drag any of UILabel's tiny squares.

I am remoted into the Mac from Windows through Teamviewer.

Here's what I see. But there is also the little mickey mouse glove hovering over the square, but ctrl-Print-Screen didn't copy that through TeamViewer.