Investing.com -- U.S. stock futures were muted on Tuesday following comments from Federal Reserve policymakers that aimed to rein in enthusiasm in financial markets for possible impending interest rate cuts. Meanwhile, Google agrees to pay $700 million to settle a lawsuit brought by U.S. states and consumers over alleged anticompetitive practices at its Play app store, while Tesla (NASDAQ:TSLA) is reportedly eyeing a pay bump for some hourly workers at its battery factory in Nevada.
1. Futures little changed
U.S. stock futures were little changed on Tuesday, as investors weighed commentary from Federal Reserve officials that tried to temper exhuberance over potential interest rate cuts next year.
By 04:57 ET (09:57 GMT), Dow futures and S&P 500 futures had both moved up by 0.1%, while Nasdaq 100 futures hovered mostly around the flatline.
The main indices on Wall Street were broadly higher on Monday, with the benchmark S&P 500 adding 0.5% and the tech-heavy Nasdaq Composite climbing by 0.6%.
Cleveland Fed President Loretta Mester pushed back against the notion that borrowing costs will soon be lowered, telling the Financial Times that markets are "a little bit ahead" in their projections for a reduction as early as March. She added that traders jumped too quickly to the "end part" that the Fed is "going to normalize quickly," the FT reported. Her comments echoed sentiments from other Fed policymakers since the bank held rates at more than two-decade highs last week, but suggested that a dovish pivot may be coming in 2024.
In earnings, FedEx (NYSE:FDX) is due to report its November quarter results after the closing bell.
2. Google to pay $700 million in Play store settlement
Alphabet's (NASDAQ:GOOGL) Google has agreed to pay $700 million to settle a lawsuit brought against the search giant by U.S. states and consumers over anticompetitive practices at its Play app store on Android devices, court filings showed on Monday.
The settlement, which was first agreed upon in September and still requires a judge's final approval, will see Google place $630M into a fund for consumers and $70M into a separate fund for the states. Google has also promised to make changes to the Play store that will help boost competition.
Google had been accused of quashing the use of alternative payment methods on the Play Store, allowing it to collect greater fees on digital purchases. The company did not admit to any wrongdoing, but said it was moving to give app and game developers an expanded selection of billing options.
The terms of the settlement come after "Fortnite"-maker Epic Games emerged victorious in a similar case last week.
3. Tesla to increase pay for workers at Nevada gigafactory - CNBC
Tesla is planning a 10% or greater pay rise for some set-rate hourly employees at its battery factory in Sparks, Nevada, CNBC reported.
Citing internal materials and workers at the plant who were informed of "cost of living adjustments," the news channel said that the electric vehicle manufacturer will increase hourly wages from $20 to $22 on the low end and from $30.65 to $34.50 per hour on the high end. The raise can add anywhere from $2 to $8.30 an hour to the employees' pay, the report noted.
Some levels will also be streamlined, CNBC added. For example, several levels of workers currently making between $26.20 to $30.65 per hour will see a pay bump to $34.50 an hour, the report said.
The adjustments could help Tesla persuade workers at the Nevada site not to form a union and demand a collective agreement, according to CNBC. Chief Executive Elon Musk has previously said he "disagree[s] with the idea of unions."
Tesla already faces an escalating labor dispute in Sweden that is threatening to spread into neighboring Denmark, Norway and Finland.
4. Yen falls as Bank of Japan maintains dovish course
The Japanese yen weakened against the U.S. dollar on Tuesday after the Bank of Japan kept its ultra-dovish stance and offered no clues into a possible policy pivot, while broader Asian currencies were muted as a post-Federal Reserve rally cooled.
The BOJ left interest rates in negative territory as widely expected, and said it will continue with its yield curve control measures to support Japanese economic growth. But the bank offered scant cues on its plans for any monetary policy tightening in 2024.
“With extremely high uncertainties surrounding economies and financial markets at home and abroad, the Bank will patiently continue with monetary easing while nimbly responding to developments in economic activity and prices as well as financial conditions,” the BOJ said in a statement.
5. Oil inches lower
Oil prices moved slightly lower on Tuesday after the previous session’s gains, as the U.S. announced plans to expand a naval task force to protect shipping through the Red Sea.
By 04:57 ET, the U.S. crude futures shed 0.5% to $72.48 per barrel, while the Brent contract dipped by 0.4% to $77.64 per barrel.
Both benchmarks rose more than 1% on Monday following a decision by several shippers and oil major BP to divert vessels away from the crucial Red Sea waterway. The move, a response to assaults by Houthi militants in Yemen on commercial shipping, exacerbated fears over supply disruptions.