Updated 7:48 a.m. ET on Tuesday, June 27
S&P 500 futures were down 0.1%, Dow Jones Industrial Average futures slid 0.1%, and Nasdaq futures fell 0.33%.
Alphabet fell more than 1% after its Google division was fined a record €2.42 billion ($2.7 billion) by the European Commission. The search engine was accused of abusing its dominance as a search engine by giving itself an advantage in comparison shopping services.
"What Google has done is illegal under EU antitrust rules," said Competition Commissioner Margrethe Vestager. "It denied other companies the chance to compete on the merits and to innovate. And most importantly, it denied European consumers a genuine choice of services and the full benefits of innovation."
Google now has 90 days to end its conduct or face payments of up to 5% of the average daily global revenue of its parent company, Alphabet, the commission said.
The fine is the largest in EU history, topping the €1.06 billion penalty levied on Intel Corp. in 2009.
The rest of the FAANG stocks were under pressure on Tuesday. Facebook Inc. (FB) - Get Report , Amazon.com Inc. (AMZN) - Get Report , Apple Inc. (AAPL) - Get Report and Netflix Inc. (NFLX) - Get Report were each lower in premarket trading. The stocks comprising the acronym have already seen losses in recent weeks after the names pulled back from lofty heights. FAANG stocks had contributed a large portion of the S&P 500's gains in the year to date.
In Fedspeak Tuesday, Philadelphia Fed President Patrick Harker will discuss the economic outlook at an event in London at 11:15 a.m. ET. Fed Chair Janet Yellen will also speak on the global economy in a conversation with President of the British Academy Lord Nicholas Stern at 1 p.m. San Francisco Fed President John C. Williams spoke at an economic forum in Sydney, Australia early morning.
On the economic calendar Tuesday, the S&P Corelogic Case-Shiller home price index for April will be released before the bell, and consumer confidence for June is set for 10 a.m.
Crude oil prices were on the rise for the fourth session in a row as commodities markets came back from a major selloff last week that pushed West Texas Intermediate into bear market territory. Crude has been under pressure lately on worries over global oversupply and stubbornly high production. Crude reached its lowest level in 10 months on Wednesday, June 21.
West Texas Intermediate crude was up 1% to $43.83 a barrel on Tuesday morning.
It's the final week of the second quarter and benchmark indexes are expected to post solid gains. Strong fundamentals and a positive earnings season have given markets a boost over the past three months even as volatility held at multi-year lows.
The Dow is on track to end more than 3% higher for the quarter, adding to the 4.5% growth seen in the first quarter. Likewise, the S&P 500 is on track to end with gains of roughly 3%, slowing from the 5.5% increase seen in the first three months of the year.
The latest iteration of the Republican plan to repeal and replace Obamacare would increase the number of people without health coverage by 22 million and cut the deficit by $321 billion through 2026, according to estimates released by the Congressional Budget Office released on Monday.
The nonpartisan budget and tax analysis agency's estimates forecast the effects of the Better Care Reconciliation Act, the healthcare bill crafted by Senate Republicans and released last week. Senate Majority Leader Mitch McConnell (R-KY) has said he wants to bring the bill to a vote before the July 4 recess, though he has met enough opposition from within his own party so that it is not clear the legislation would pass.
Darden Restaurants Inc. (DRI) - Get Report rose 3% in premarket trading after topping earnings and sales estimates over its recent quarter. The parent of Olive Garden reported adjusted earnings of $1.18 a share, 3 cents higher than expected. Sales of $1.93 billion came in ahead of $1.87 billion consensus. Same-restaurant sales rose 3.3%, led by gains at Olive Garden and Longhorn Steakhouse.
J.C. Penney Co. (JCP) - Get Report increased nearly 2% in premarket trading after Gordon Haskett Research Advisors upgraded its rating on the stock to hold from reduce. Analysts are optimistic the retailer can reach its fiscal 2017 same-store sales forecast for a decline of 1% to growth of 1%.
Pandora Media Inc. (P) shares were halted in premarket trading Tuesday. The company has been the subject of takeover speculation for months given its 35% decline since the beginning of the year. Pandora recently secured a $480 million investment from Liberty Media-owned satellite radio company Sirius XM Holdings Inc. (SIRI) - Get Report .
Semiconductor firm Western Digital Corp. (WDC) - Get Report fell 1% even after the company said its profit for the fiscal fourth quarter would be higher. The revised guidance is based on a 1-point increase in its gross profit outlook driven by the sales of flash memory chips and enterprise-class hard drives. San Jose, Calif.-based Western Digital now expects revenue of $4.8 billion, gross profit margin equivalent to 41% of sales, and earnings per share of $2.85. The company's gross margin is a point higher, and the prior EPS forecast was $2.55 to $2.65.
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