|
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 <AAPL.O>, Alphabet <GOOGL.O>,
Facebook <FB.O> and Microsoft <MSFT.O> 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
hikes.
Oil edged lower toward $47 a barrel after an industry report
said U.S. inventories increased, reviving concerns that a
three-year supply glut is far from over. [O/R]
Spectranetics <SPNC.O> jumped 26.6 percent to $38.50 after Dutch
healthcare company Philips <PHG.AS> agreed to buy the company
for $2.16 billion.
KB Home <KBH.N> edged up 0.8 percent to $23 after the
homebuilder increased its full-year forecast.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
