US pre-open: Stocks seen mixed with Nasdaq under pressure
US futures pointed to a mixed open on Wall Street on Tuesday as the recent tax reform-fuelled gains ran out of steam and the tech-heavy Nasdaq came under pressure.
At 1210 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.2% and 0.1%, respectively, while Nasdaq futures were down 0.4%.
On Monday, the Dow notched up a record close as investors cheered the passing of the US tax reform bill, but the rest of the market closed in the red, with technology stocks under the cosh.
Jasper Lawler, head of research at London Capital Group, said: "Technology has been the most consensus, as well as the one of the best-performing trades of 2017. That combination is making investors nervous going into year-end and they are taking profits. After briefly reaching a three-day high on Monday, the tech-heavy Nasdaq 100 slammed back down to finish -1.17% and near its lows.
"The idea that tech could be in for a bigger correction does have more merit with year-end repositioning so in the short-term, a clear break below 6,250 in the Nasdaq 100 could see the index fall to 6,100 then 6,000."
Craig Erlam, senior market analyst at Oanda, said: "The passage of tax reform through Congress will likely be the key focus for US investors between now and year-end, with a rate hike this month almost entirely priced in. While these discussions take place though there is plenty of data to keep an eye on including of course this Friday’s jobs report.
"Today it’s the ISM non-manufacturing PMI that will steal the focus, as well as the services PMI reading, both for November."
Trade balance figures are due at 1330 GMT, while Markit's services and composite PMIs are due at 1445 GMT and ISM non-manufacturing PMI is at 1500 GMT.
In corporate news, payments company Mastercard was higher in pre-market after announcing a new $4bn share buyback programme and a dividend hike, while car parts seller AutoZone rallied after better-than-expected earnings.
Regal Entertainment racked up strong gains in pre-market trade after it agreed to be bought by UK cinema chain Cineworld for $3.6bn.
Elsewhere, Amazon.com could be in focus after launching its first full offering in Australia.