MARKET SNAPSHOT: Dow Futures Fall More Than 300 Points As Oil, Asia Selloff Rattle Investors
Source: Dow Jones News
By Sara Sjolin, MarketWatch
It's 'very, very ugly', says analyst
Wall Street was set for steep losses at the open on Wednesday, as a renewed selloff in Asia and tanking oil prices triggered a flight from risky assets such as equities.
Investors were also holding off from making any big moves ahead of the release of inflation data and housing numbers for December,due ahead of the bell.
Futures for the Dow Jones Industrial Average lost 313 points, or 2%, to 15,600, while those for the S&P 500 index dropped 34.90 points, or 1.9%, to 1,838. Futures for the Nasdaq 100 index fell 91.75 points, or 2.2%, to 4,052.75.
The slides came as part of a broader global selloff in the equity market, fueled by oil creeping further below $28 (http://www.marketwatch.com/story/oil-prices-hit-fresh-12-year-low-under-28-a-barrel-2016-01-20) a barrel and worries over a slowdown in China. In Asia (http://www.marketwatch.com/story/hong-kong-stocks-hit-312-year-low-japan-nears-bear-market-2016-01-19), Japan's Nikkei slid into bear market territory, which marks a 20% slump from a recent high. And in Europe, markets were lower across the board, with the Stoxx Europe 600 index down 3% and on track for its lowest close since late 2014.
"Ugly; very very ugly, describes current equity markets, with momentum swinging negative yet again and the bears firmly in control. The fledgling hope from yesterday that markets were on the turn has been quashed by sharp overnight falls in Japan and Asia," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor, in a note.
"With every upturn being followed by deeper falls, investors are increasingly wary as it becomes more and more difficult to determine what might happen next," she added.
Read:China's problems now spilling into Hong Kong (http://www.marketwatch.com/story/have-investors-lost-faith-in-hong-kong-as-well-as-in-china-2016-01-19)
The S&P 500 index and Dow industrials closed marginally higher on Tuesday (http://www.marketwatch.com/story/dow-futures-rise-by-200-points-as-stocks-try-to-rebound-2016-01-19) following a rally in Europe, while the Nasdaq Composite closed down 0.3%.
Oil blues: Crude oil lost 2.4% to $27.77 a barrel for the February contract, which expires at the end of trade Wednesday. Crude for March delivery fell 2.4% to $28.84.
The losses weighed on U.S. oil companies, with shares of Chevron Corp. (CVX) down 2.2% ahead of the bell, Exxon Mobil Corp. (XOM) off 1.8%, and Anadarko Petroleum Corp. (APC) 6% lower.
Other movers and shakers: U.S.-listed shares of Royal Dutch Shell PLC (RDSB.LN) dropped 4.2% after the oil giant forecast fourth-quarter profit fell as much as 50% (http://www.marketwatch.com/story/shell-profit-falls-up-to-50-as-oil-prices-slump-2016-01-20).
Shares of International Business Machines Corp. (IBM) slid 4.4% premarket after the computer maker late Tuesday reported a drop in fourth-quarter earnings (http://www.marketwatch.com/story/ibm-profit-falls-on-lower-revenue-2016-01-19-164854141).
Read:IBM needs software to save it from prolonged downfall (http://www.marketwatch.com/story/ibm-needs-software-to-save-it-from-prolonged-downfall-2016-01-19)
Netflix Inc. (NFLX) rose 3.7% ahead of the open, after the media-streaming company late Tuesday released earnings that beat expectations (http://www.marketwatch.com/story/netflix-shares-up-on-earnings-beat-company-predicts-modest-q1-2016-01-19).
Goldman Sachs Group Inc. (GS) fell 1.8% ahead of the release of its fourth-quarter earnings. The result is expected to be dented by about $1.5 billion, after taxes, after the Wall Street bank last week agreed to the largest regulatory penalty (http://www.marketwatch.com/story/goldman-sachs-to-pay-record-5-billion-penalty-over-sale-of-mortgage-bonds-2016-01-15) in its history over the sale of mortgage bonds.
Also on the earnings calendar on Wednesday are restaurant operator Brinker International Inc. (EAT) ahead of the bell, and energy-infrastructure company Kinder Morgan Inc. (KMI) after the market closes.
Data: Investors were also waiting for December inflation data due at 8:30 a.m. Eastern Time. Economists polled by MarketWatch forecast no rise in consumer prices month-on-month and for core inflation to come in at 0.1%.
Also at 8:30 a.m., housing starts data for December come out, expected to show a rise to 1.225 million from 1.173 million in November (http://www.marketwatch.com/story/housing-starts-jump-105-2015-12-16).
Other markets: The dollar traded mixed against other major currencies and flirted with an all-time high against the ruble .
Read: Wednesday is make-or-break day for Brazil's currency (http://www.marketwatch.com/story/wednesday-is-a-make-or-break-day-for-brazils-currency-2016-01-19)
Most metals declined, but gold rose 0.5% as the financial market volatility spooked investors into perceived safe havens.
(END) Dow Jones Newswires
January 20, 2016 05:30 ET (10:30 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Source: Dow Jones News
By Sara Sjolin, MarketWatch
It's 'very, very ugly', says analyst
Wall Street was set for steep losses at the open on Wednesday, as a renewed selloff in Asia and tanking oil prices triggered a flight from risky assets such as equities.
Investors were also holding off from making any big moves ahead of the release of inflation data and housing numbers for December,due ahead of the bell.
Futures for the Dow Jones Industrial Average lost 313 points, or 2%, to 15,600, while those for the S&P 500 index dropped 34.90 points, or 1.9%, to 1,838. Futures for the Nasdaq 100 index fell 91.75 points, or 2.2%, to 4,052.75.
The slides came as part of a broader global selloff in the equity market, fueled by oil creeping further below $28 (http://www.marketwatch.com/story/oil-prices-hit-fresh-12-year-low-under-28-a-barrel-2016-01-20) a barrel and worries over a slowdown in China. In Asia (http://www.marketwatch.com/story/hong-kong-stocks-hit-312-year-low-japan-nears-bear-market-2016-01-19), Japan's Nikkei slid into bear market territory, which marks a 20% slump from a recent high. And in Europe, markets were lower across the board, with the Stoxx Europe 600 index down 3% and on track for its lowest close since late 2014.
"Ugly; very very ugly, describes current equity markets, with momentum swinging negative yet again and the bears firmly in control. The fledgling hope from yesterday that markets were on the turn has been quashed by sharp overnight falls in Japan and Asia," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor, in a note.
"With every upturn being followed by deeper falls, investors are increasingly wary as it becomes more and more difficult to determine what might happen next," she added.
Read:China's problems now spilling into Hong Kong (http://www.marketwatch.com/story/have-investors-lost-faith-in-hong-kong-as-well-as-in-china-2016-01-19)
The S&P 500 index and Dow industrials closed marginally higher on Tuesday (http://www.marketwatch.com/story/dow-futures-rise-by-200-points-as-stocks-try-to-rebound-2016-01-19) following a rally in Europe, while the Nasdaq Composite closed down 0.3%.
Oil blues: Crude oil lost 2.4% to $27.77 a barrel for the February contract, which expires at the end of trade Wednesday. Crude for March delivery fell 2.4% to $28.84.
The losses weighed on U.S. oil companies, with shares of Chevron Corp. (CVX) down 2.2% ahead of the bell, Exxon Mobil Corp. (XOM) off 1.8%, and Anadarko Petroleum Corp. (APC) 6% lower.
Other movers and shakers: U.S.-listed shares of Royal Dutch Shell PLC (RDSB.LN) dropped 4.2% after the oil giant forecast fourth-quarter profit fell as much as 50% (http://www.marketwatch.com/story/shell-profit-falls-up-to-50-as-oil-prices-slump-2016-01-20).
Shares of International Business Machines Corp. (IBM) slid 4.4% premarket after the computer maker late Tuesday reported a drop in fourth-quarter earnings (http://www.marketwatch.com/story/ibm-profit-falls-on-lower-revenue-2016-01-19-164854141).
Read:IBM needs software to save it from prolonged downfall (http://www.marketwatch.com/story/ibm-needs-software-to-save-it-from-prolonged-downfall-2016-01-19)
Netflix Inc. (NFLX) rose 3.7% ahead of the open, after the media-streaming company late Tuesday released earnings that beat expectations (http://www.marketwatch.com/story/netflix-shares-up-on-earnings-beat-company-predicts-modest-q1-2016-01-19).
Goldman Sachs Group Inc. (GS) fell 1.8% ahead of the release of its fourth-quarter earnings. The result is expected to be dented by about $1.5 billion, after taxes, after the Wall Street bank last week agreed to the largest regulatory penalty (http://www.marketwatch.com/story/goldman-sachs-to-pay-record-5-billion-penalty-over-sale-of-mortgage-bonds-2016-01-15) in its history over the sale of mortgage bonds.
Also on the earnings calendar on Wednesday are restaurant operator Brinker International Inc. (EAT) ahead of the bell, and energy-infrastructure company Kinder Morgan Inc. (KMI) after the market closes.
Data: Investors were also waiting for December inflation data due at 8:30 a.m. Eastern Time. Economists polled by MarketWatch forecast no rise in consumer prices month-on-month and for core inflation to come in at 0.1%.
Also at 8:30 a.m., housing starts data for December come out, expected to show a rise to 1.225 million from 1.173 million in November (http://www.marketwatch.com/story/housing-starts-jump-105-2015-12-16).
Other markets: The dollar traded mixed against other major currencies and flirted with an all-time high against the ruble .
Read: Wednesday is make-or-break day for Brazil's currency (http://www.marketwatch.com/story/wednesday-is-a-make-or-break-day-for-brazils-currency-2016-01-19)
Most metals declined, but gold rose 0.5% as the financial market volatility spooked investors into perceived safe havens.
(END) Dow Jones Newswires
January 20, 2016 05:30 ET (10:30 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
