US STOCKS-Futures under stress as tech selloff continues

Last Updated: Wed, Dec 06, 2017 18:20 hrs

* Futures down: Dow 29 pts, S&P 2.5 pts, Nasdaq 24.25 pts

By Sruthi Shankar

Dec 6 (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, Facebook were all down between 0.53 percent and 0.73 percent in premarket trading.

* Other major decliner was Home Depot, which lost more than 1 percent after the home improvement chain announced a $15 billion share repurchase plan.

* The S&P technology index 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.

* 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.

* 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 slipped more than 11 percent after the oil and gas producer agreed to buy Fifth Creek Energy for about $649 million.

* AeroVironment 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 were down 29 points, or 0.12 percent, with 25,990 contracts changing hands.

* S&P 500 e-minis were down 2.5 points, or 0.1 percent, with 169,943 contracts traded.

* Nasdaq 100 e-minis 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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