* Alphabet falls after record EU antitrust fine
* Yellen participates in a discussion at 1 p.m. ET
* GM slips after cutting 2017 sales forecast
* Futures down: Dow 13 pts, S&P 1.5 pts, Nasdaq 21.50 pts
(Adds details, comment, updates prices)
By Tanya Agrawal
June 27 (Reuters) – Wall Street was poised for a lower open
on Tuesday as a selloff in technology shares continued, while
investors awaited clues on interest rate hikes from Federal
Reserve Chair Janet Yellen’s talk in London.
The tech sector has been under pressure over concerns about
lofty valuations, with investors shifting to high-dividend
paying defensive sectors such as utilities in a rising interest
The technology index has jumped about 19 percent
since the beginning of the year and has been the major force
behind the S&P’s record-setting rally.
“The indices continue to hover near the very high end of the
recent ranges, suggesting this week’s end-of-the-quarter window
dressing is likely to see more sector rotation,” Peter Cardillo,
chief market economist at First Standard Financial, wrote in a
“The broadening out of the markets, we believe, is essential
for the markets to escape a near-term correction.”
Yellen is scheduled to take part in a discussion on global
economic issues in London at 1 p.m. ET (1700 GMT). Investors
expect Yellen to offer more insight into the state of the U.S.
economy, which would support the Fed’s forecast of a rate hike
Fed officials have signaled that they would look through a
slowdown in inflation and continue on their current path for
hikes. But investors are skeptical and market pricing shows only
a 40 percent chance of a rate hike at the Fed’s December
Dow e-minis were down 13 points, or 0.06 percent,
with 24,605 contracts changing hands at 8:32 a.m. ET.
S&P 500 e-minis were down 1.5 points, or 0.06
percent, with 141,601 contracts traded.
Nasdaq 100 e-minis were down 21.5 points, or 0.37
percent, on volume of 33,000 contracts.
Investors have been anxious about a recent set of weak
economic data, while a steep fall in oil prices and a flattening
yield curve have added to low-inflation concerns.
The U.S. Conference Board is expected to show a drop in its
consumer confidence index for the month of June to 116, after
slipping to 117.9 in May. The data is expected at 10 a.m. ET.
Alphabet fell 1.3 percent to $959.50 in premarket
trading after EU antitrust regulators hit the tech giant with a
record $2.7 billion fine.
Sprint rose 5.8 percent to $8.47 after the
fourth-largest U.S. wireless service provider was said to be in
talks with Charter Communications Inc and Comcast Corp
about a wireless partnership. Comcast was down 1.2
percent while Charter was little changed.
T-Mobile was down 5 percent at $60 after Reuters
reported that Sprint had put its merger talks with the company
General Motors slipped 0.5 percent to $34.34 after
the automaker lowered its outlook for new sales in 2017. Fiat
Chrysler fell 1 percent, while Ford was flat.
(Reporting by Tanya Agrawal; Editing by Anil D’Silva)