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REFILE-US STOCKS-Futures slip on tech selloff; Yellen in focus
June 27, 2017 / 11:36 AM / 2 months ago

REFILE-US STOCKS-Futures slip on tech selloff; Yellen in focus

(Corrects third bullet to 1700 GMT from 1500 GMT)

* Futures down: Dow 19 pts, S&P 2.5 pts, Nasdaq 25.75 pts

By Tanya Agrawal

June 27 (Reuters) - U.S. stock index futures were lower 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 stretched valuations, with investors shifting to high-dividend paying defensive sectors such as utilities in a rising interest rate environment.

* 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 this year.

* 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 meeting.

* Minneapolis Fed head Neel Kashkari and Philadelphia Fed chief Patrick Harker are also scheduled to speak later in the day.

* Investors have been anxious about a patch of recent weak economic data, while a steep fall in oil prices and a flattening yield curve have added to low-inflation concerns.

* Data on Monday showed new orders for key U.S.-made capital goods unexpectedly fell in May and shipments also declined.

* The U.S. Conference Board is expected to show a drop in its consumer confidence index for the month of June to 116.0, after slipping to 117.9 in May. The data is expected at 10 a.m. ET.

* Oil prices rose for a fourth consecutive session, boosted by a weaker dollar and investors covering short positions, but worries over persistent oversupply capped gains.

* Alphabet fell 1.1 percent to $962 in premarket trading after EU antitrust regulators hit the tech giant with a record $2.7 billion fine.

* Sprint rose 7.4 percent to $8.60 after sources said the wireless carrier is in talks with Charter Communications and Comcast about a partnership to boost the companies' wireless offerings. Comcast was down 1.5 percent at $39, while Charter was little changed at $332.65.

* General Motors slipped 0.8 percent to $34.24 after the automaker lowered its outlook for new sales in 2017.

Futures snapshot at 7:03 a.m. ET:

* Dow e-minis were down 19 points, or 0.09 percent, with 21,243 contracts changing hands.

* S&P 500 e-minis were down 2.5 points, or 0.1 percent, with 118,710 contracts traded.

* Nasdaq 100 e-minis were down 25.75 points, or 0.45 percent, on volume of 25,477 contracts. (Reporting by Tanya Agrawal; Editing by Anil D'Silva)

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