Tuesday June 27th


Nasdaq futures fall as Google leads big tech lower

Nasdaq futures pulled back about half a percent Tuesday after Google was hit with a record fine of $2.7 billion by European Union regulators. Investigations were triggered after the European Commission received dozens of complaints from U.S. and European competitors who claimed that the company abused its search market dominance to give its Google Shopping service an advantage over other retailers and create a monopoly over consumers. Though the company was charged with distorting internet results by the EU competition authority in April 2015 it has not before faced fines for an abuse of this nature and marks a landmark for the way technology companies are regulated. Shares of Google-parent Alphabet traded about 1 percent lower in the premarket. Dow and S&P futures, meanwhile, pointed to a flat to slightly lower open as investors awaited data and key remarks from leading Federal Reserve members including Chair Janet Yellen. A whole host of officials from the leading U.S. central bank are set to speak on Tuesday, with investors keeping an eye out for any hints as to how the U.S. economy is performing. On Tuesday, San Francisco Fed President John Williams told an audience at Macquarie University in Sydney that advanced economies would find themselves stuck with slow growth over the long-term, unless fiscal authorities do something pivotal to turn things around; Reuters reported. Stepping aside from central bank news, a slew of economic releases should come out on Tuesday including the S&P /Case-Shiller Home Price Index due out at 9.00 a.m. ET. Consumer confidence and the Richmond Fed Manufacturing Index are also slated to be released, both out at 10 a.m. ET. In earnings, Darden Restaurants, FactSet, IHS Markit and KB Home are due to come out. Switching to commodities, oil prices posted gains on Tuesday, however, glut concerns continue to linger. At 7:05 a.m. ET, U.S. crude was trading around $43.80, while Brent was at $46.36. In Europe, bourses were trading in the red during morning trade, while Asia-Pacific markets finished trade mixed to higher. The Nikkei 225 rose 0.36 percent, or 71.74 points, to end at 20,225.09, while South Korea's benchmark Kospi index reversed earlier losses to close 0.14 percent, or 3.29 points, higher at 2,391.95. Greater China markets were mixed. Hong Kong's Hang Seng Index gave up earlier gains to trade lower by 0.07 percent at 3:03 p.m. HK/SIN. The Shanghai Composite closed up by 0.19 percent, or 6.0708 points, at 3,191.5147, and the Shenzhen Composite inched higher by 0.092 percent, or 1.7408 points, to end at 1,898.5354. Markets in Indonesia were closed for a public holiday. Gold rose on Tuesday after hitting a six-week low in the previous session as bargain hunting set in and the dollar fell before speeches by U.S. Federal Reserve officials. Spot gold rose 0.45 percent to $1,249.60 per ounce. It hit a near six-week low of $1,236.46 on Monday. U.S. gold futures for August rose 0.30 percent to $1,250.10 per ounce.