Futures under stress as tech selloff continues
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[December 06, 2017]
By Sruthi Shankar
(Reuters) - U.S. stock futures pointed to
losses at the open on Wednesday as high-flying technology stocks fell
for the fourth day on worries over lofty valuations and the impact of a
tax overhaul on corporate earnings.
* The Nasdaq Composite index lost 1.6 percent in the past three days,
its worst such fall in more than three months.
* Tech giants Apple, Microsoft <MSFT.O>, Facebook <FB.O> were all down
between 0.53 percent and 0.73 percent in premarket trading.
* Other major decliner was Home Depot <HD.N>, which lost more than 1
percent after the home improvement chain announced a $15 billion share
repurchase plan.
* The S&P technology index <.SPLRCT> has risen about 34 percent this
year and was down nearly 4 percent over the past week as investors
shifted money to banks, retailers and other stocks that could benefit
the most from corporate tax cuts.
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* The bill passed on Saturday by Republican senators included a
last-minute change to retain the corporate alternative minimum tax, or
AMT, which had initially been removed.
* Including the AMT could negate parts of the bill seen as beneficial to
tech companies and other corporations.
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![](../images/120617pics/busine40.jpg)
Traders work on the floor of the New York Stock Exchange shortly
after the opening bell in New York, U.S., December 5, 2017.
REUTERS/Lucas Jackson
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* The ADP National Employment Report, due at 8:15 a.m. ET (1345 GMT), is
expected to show U.S. private employers added 185,000 jobs in November, compared
with a gain of 235,000 jobs in previous month.
* Among other early movers, Bill Barret <BBG.N> slipped more than 11 percent
after the oil and gas producer agreed to buy Fifth Creek Energy for about $649
million.
* AeroVironment <AVAV.O> surged 23.5 percent after the drone maker reported
surprise quarterly profit, helped by higher gross margin.
Futures snapshot at 7:00 a.m. ET:
* Dow e-minis <1YMc1> were down 29 points, or 0.12 percent, with 25,990
contracts changing hands.
* S&P 500 e-minis <ESc1> were down 2.5 points, or 0.1 percent, with 169,943
contracts traded.
* Nasdaq 100 e-minis <NQc1> were down 24.25 points, or 0.39 percent, on volume
of 46,300 contracts.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)
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