* Futures: Dow up 13 pts, S&P up 1.75 pts, Nasdaq off 21.5
By Tanya Agrawal
June 28 (Reuters) – Nasdaq futures were lower for a second
straight day on Wednesday as the selloff in tech stocks
continued, while the S&P 500 and the Dow Jones Industrial
Average futures were little changed.
* Investors are gauging the impact of a global ransomware
attack that disrupted computers at banks and large companies.
* The tech index has been under pressure in the last few
weeks as investors, concerned with the sector’s lofty
valuations, shift to defensive sectors.
* Shares of big tech names such as Apple, Alphabet
, Facebook and Microsoft were all down
in premarket trading.
* A delay in the Republican healthcare bill also weighed
after a planned vote on a bill to dismantle the Affordable Care
Act was put off to after the Senate’s July 4 recess.
* The healthcare legislation, which has encountered
resistance from several Republicans, is the first plank of
President Donald Trump’s domestic policy agenda, with investors
eager for him to move onto his other plans, including tax cuts,
infrastructure spending and deregulation.
* Trump’s promises of a pro-growth agenda is partly behind
the S&P’s 13 percent rise since the Nov. 8 election.
* Investors are gearing up for second-quarter corporate
earnings season after a strong first quarter, with the S&P 500
trading at nearly 18 times forward earnings estimates, well
above its long-term average of 15 times.
* U.S. Federal Reserve Chair Janet Yellen said on Tuesday
the central bank would continue raising rates gradually and that
“by standard metrics, some asset valuations look high but
there’s no certainty about that.”
* Fed officials have signaled that they would look through a
slowdown in inflation and continue on their current path for
* Oil edged lower towards $47 a barrel after an industry
report said U.S. inventories increased, reviving concerns that a
three-year supply glut is far from over.
* Spectranetics jumped 26.6 percent to $38.50 after
Dutch healthcare company Philips agreed to buy the
company for $2.16 billion.
* KB Home edged up 0.8 percent to $23 after the
homebuilder increased its full-year forecast.
Futures snapshot at 7:07 a.m. ET (1107 GMT):
* Dow e-minis were up 13 points, or 0.06 percent,
with 27,324 contracts changing hands.
* S&P 500 e-minis were up 1.75 points, or 0.07
percent, with 178,848 contracts traded.
* Nasdaq 100 e-minis were down 21.5 points, or 0.38
percent, on volume of 51,900 contracts.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)