LDN - Business

Stock futures slightly higher as tech sector recovery continues

[June 20, 2017] By Tanya Agrawal

(Reuters) - U.S. stock index futures were slightly higher on Tuesday as technology stocks continued to recover from their steep selloff last week.

The S&P technology sector is coming off two straight weeks of losses on worries about the sector's valuation and a move into more defensive sectors. Tech stocks have led the S&P 500's 9.6 percent rally this year.

Apple, Amazon, Alphabet and Netflix were all up about 0.3 percent in premarket trading.

The S&P 500 and the Dow Jones Industrial Average hit record highs on Monday with tech stocks finding favor as investors appeared to regain confidence in the economy after upbeat comments from Federal Reserve officials.

Chicago Fed President Charles Evans said it may be worthwhile for the U.S. central bank to wait until year-end to decide whether to raise rates again.

New York Fed head William Dudley said inflation was a bit low but should rise alongside wages as the labor market continues to improve.

Investors will once again turn their attention to Fed speakers with Boston Fed head Eric Rosengren and Dallas Fed chief Robert Kaplan scheduled to make appearances.

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 2, 2017. REUTERS/Brendan McDermid

Oil prices fell to seven-month lows after news of increases in supply, a trend which has undermined attempts by OPEC and other producers to support the market through reduced output. [O/R]

Among stocks, Lennar <LEN.N> rose 3.8 percent to $54.75 after the No. 2 U.S. homebuilder reported a higher-than-expected quarterly profit.

Parexel International <PRXL.O> jumped 8.1 percent to $90.68 after a source said private equity firm Pamplona Capital is nearing a deal to acquire the pharmaceutical research services provider for more than $4.5 billion.

(Reporting by Tanya Agrawal)

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