Premarket: 5 things to know before the bell
1. Record fine for Google: European antitrust regulators slapped Google with a record €2.4 billion ($ 2.7 billion) fine on Tuesday for systematically favoring its own search results above those of its competitors.
The European Commission found that the U.S. tech giant used its search results to unfairly steer customers to its own shopping platform in a case that dates to 2010.
Regulators said that Google (GOOGL, Tech30) must change its behavior within 90 days or face additional penalties.
“What Google has done is illegal under EU antitrust rules,” said Margrethe Vestager, the bloc’s top antitrust official. “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(GOOGL, Tech30) has the right to appeal the decision. It did not immediately respond to a request for comment.
2. Central bankers in the spotlight: Some of the world’s most influential central bankers will speak on Tuesday.
U.S. Federal Reserve Chair Janet Yellen is scheduled to appear at a conference in London at 1 p.m. ET.
Investors hope she will remain upbeat in her assessment of the global economy. The Fed raised interest rates earlier this month, in a sign it is more optimistic about growth.
Mario Draghi, president of the European Central Bank, is scheduled to speak at a forum in Sintra, Portugal.
Meanwhile, the Bank of England will release its Financial Stability Report, giving more insight into its views on the current economic and financial situation in the U.K. A new consumer confidence survey by polling firm YouGov showed a major slump in how British consumers are feeling after the general election in early June.
3. More pain for Brazil: Brazil’s political crisis has widened again after prosecutors filed criminal charges for “passive corruption” against President Michel Temer, the state news agency reported on Monday.
Temer was the former vice president to Dilma Rousseff, who was impeached last year.
Brazil is in the midst of a deep political and economic crisis. While the longest recession in the country’s history finally ended in the first quarter, the unemployment rate hit a new record of 13.6% in June.
4. Global market overview: U.S. stock futures were lower early Tuesday.
European markets opened down, while Asian markets ended the session mixed.
U.S. crude futures were trading 0.8% higher.
The Dow Jones industrial average gained 0.1% on Monday. The Nasdaq added 0.3%, while the S&P 500 closed flat.
Before the Bell newsletter: Key market news. In your inbox. Subscribe now!
5. Earnings and economics: Darden Restaurants (DRI) and Barnes & Noble Education (BNED) are set to release earnings before the open Tuesday. AeroVironment (AVAV) will follow after the close.
Multiple media reports indicate Sprint (S) is in talks with Charter Communications (CHTR) and Comcast (CCV) about a partnership that would boost the two media companies’ mobile phone business.
Mexico will post its trade balance data for May at 9 a.m. ET Tuesday.
The Conference Board plans to release its Consumer Confidence report for June at 10 a.m. ET.
