| | The major U.S. index futures are pointing to a lower opening on Tuesday, with stocks likely to see further downside following the sell-off seen in the previous session.
A negative reaction to the latest batch of earnings news from companies such as Target (TGT) may lead to continued weakness on Wall Street.
Continued weakness among technology stocks may also weigh on the markets as traders remain worried about the outlook for demand.
Stocks moved sharply lower over the course of the trading session on Monday, adding to the steep losses posted last week. The major averages slid firmly into negative territory, with the Nasdaq falling to its lowest closing level in almost five months.
Although the major averages all closed notably lower, the Nasdaq underperformed its counterparts. The Nasdaq plunged 219.40 points or 3 percent to 7,028.48, while the Dow tumbled 395.78 points or 1.6 percent to 25,017.44 and the S&P 500 slumped 45.54 points or 1.7 percent to 2,690.73.
The sell-off on Wall Street came amid lingering concerns about the outlook for the global economy along with uncertainty about the potential for a trade deal between the U.S. and China.
At the Asia Pacific Economic Cooperation summit over the weekend, Vice President Mike Pence said the U.S. would not back down until China changes its ways.
The stark warning dampened investor hopes for a thaw in U.S.-Chinese trade relations ahead of the G20 summit later this month in Argentina.
A pullback by shares of Apple (AAPL) also weighed on the markets, with the tech giant plummeted by 4 percent after moving higher over the two previous sessions.
The steep drop by Apple came after the Wall Street Journal said the company slashed production orders for all three of the iPhone models that were unveiled in September.
Negative sentiment was also generated by a report from the National Association of Home Builders showing a substantial decrease in homebuilder confidence in the month of November.
The report said the NAHB/Wells Fargo Housing Market Index plunged to 60 in November after inching up by one point to 68 in October. Economists had expected the index to edge down to 67.
With the much bigger than expected decrease, the housing market index dropped to its lowest level since hitting 59 in August of 2016.
"Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices," said NAHB Chief Economist Robert Dietz.
Technology stocks saw substantial weakness on the day, contributing to the particularly steep drop by the tech-heavy Nasdaq.
Software stocks turned in some of the tech sector's worst performances on the day, resulting in a 4.6 percent nosedive by the Dow Jones Software Index. Semiconductor and computer hardware stocks also saw considerable weakness.
Significant weakness was also visible among retail stocks, as reflected by the 3 percent slump by the Dow Jones Retail Index. The index ended the session at a nearly six-month closing low.
Biotechnology, tobacco, healthcare and chemical stocks also moved notably lower amid broad based weakness on Wall Street.
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Housing starts in the U.S. rebounded in the month of October, according to a report released by the Commerce Department, although the report also showed a decrease in building permits.
The Commerce Department said housing starts jumped by 1.5 percent to an annual rate of 1.228 million in October after plunging by 5.5 percent to a revised rate of 1.210 million in September.
Economists had expected housing starts to climb to a rate of 1.225 million from the 1.201 million originally reported for the previous month.
Meanwhile, the report said building permits fell by 0.6 percent to an annual rate of 1.263 million in October after surging up by 1.7 percent to an upwardly revised 1.270 million in September.
Building permits, an indicator of future housing demand, had been expected to increase to 1.267 million from the 1.241 million originally reported for the previous month.
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Shares of Target (TGT) are moving sharply lower after the retail giant reported third quarter earnings that missed analyst estimates on slightly weaker than expected comparable store sales growth.
Department store operator Kohl?s (KSS) may also come under pressure after reporting better than expected third quarter results but forecasting full-year earnings toward the low end of expectations.
Shares of Boston Scientific (BSX) are also seeing significant pre-market weakness after the medical device maker offered to acquire British pharmaceutical firm BTG Plc for approximately $4.24 billion in cash.
Victoria?s Secret parent L Brands (LB) is also likely to move to the downside after reporting better than expected third quarter earnings but cutting its annual dividend in half to $1.20 per share.
On the other hand, shares of Intuit (INTU) may move to the upside after the accounting software company reported fiscal first quarter results that exceeded analyst estimates on both the top and bottom lines.
Soup giant Campbell Soup (CPB) is also jumping in pre-market trading after reporting better than expected fiscal first quarter results and providing upbeat guidance.
Apparel retailer Urban Outfitters (URBN) may also see initial strength after reporting third quarter results that beat expectations. | | | | | Become a Shareholder in High Times The Original Voice of Cannabis. Join our investor community and help shape the emerging cannabis industry.
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European stocks have fallen on Tuesday, extending losses from the previous session as global growth worries persist and investors watch the latest developments on Brexit after U.K. Prime Minister won support from Britain's top business group for her draft deal.
While the U.K.?s FTSE 100 Index has fallen by 0.5 percent, the French CAC 40 Index and the German DAX Index are down by 1.1 percent and 1.2 percent, respectively.
The British pound has held steady against the euro and dollar as investors look forward to testimony by Bank of England policymakers on the latest November inflation report.
Apple suppliers have moved notably lower after a report that tech giant is cutting production orders for its newest iPhones.
BHP Billiton has also moved to the downside as the mining giant settled a long-standing transfer dispute with the Australian tax authority over commodity payments made to its Singapore marketing business.
Low-cost airline EasyJet has also tumbled despite posting strong financial results for fiscal 2018.
Chemicals giant BASF has also fallen in Frankfurt. The German company said that about 20,000 employees worldwide would be directly or indirectly affected by reorganization.
On the other hand, British industrial software firm AVEVA has rallied after announcing solid interim results for the six months ended September 30th.
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Asian stocks fell across the board on Tuesday as global growth worries persisted and a sell-off in technology stocks continued on worries about slackening demand.
Chinese shares fell the most in three weeks as investors remained skeptical about the outcome of a meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the G20 summit in Argentina later this month.
The benchmark Shanghai Composite Index tumbled 57.66 points or 2.1 percent to 2,645.85, while Hong Kong's Hang Seng Index plunged 2 percent to close at 25,840.34.
Japanese shares hit a three-week low, with a sell-off by technology stocks and news of Nissan Chairman Carlos Ghosn's arrest weighing on the markets. The Nikkei 225 Index slumped 238.04 points or 1.1 percent to 21,583.12, the lowest closing level since October 31st. The broader Topix Index closed 0.7 percent lower at 1,625.67.
Tokyo Electron, TDK Corp., Advantest and Murata Manufacturing shed 2-3 percent following a sharp overnight sell-off in stocks such as Facebook, Apple and Amazon on Wall Street.
Nissan Motor plunged 5.5 percent on news of Ghosn's arrest and dismissal from the company?s board over alleged financial misconduct.
Another alliance member Mitsubishi Motors slumped 6.9 percent, while Nissan supplier Nissan Shatai fell 2.5 percent and dealer Nissan Tokyo Sales Holdings declined 4.1 percent.
Australian markets fell modestly to extend losses for a third straight session on global growth worries and skepticism over how the U.S. and China will be able to make progress in trade talks.
The benchmark S&P/ASX 200 Index dropped 21.90 points or 0.4 percent to 5,671.80, while the broader All Ordinaries Index ended down 27.20 points or 0.5 percent at 5,759.20.
Tech shares underperformed after reports that Apple is cutting production orders for its newest iPhones. Xero tumbled 5.4 percent and Altium plummeted 9.4 percent.
Drugmaker CSL fell 3.6 percent as the U.S. dollar hit a nearly two-week low against its peers, pressured by cautious comments about the U.S. economy from Federal Reserve officials and data pointing to a continued slowdown in the U.S. housing market.
Meanwhile, financial stocks rebounded after sliding for six consecutive sessions, with the big four banks rising between 0.6 percent and 1.3 percent.
Miners BHP Billiton, Rio Tinto and Fortescue Metals Group rose between 0.6 percent and 0.9 percent, while energy stocks such as Woodside Petroleum, Santos, Origin Energy and Oil Search lost 1-2 percent.
On the economic front, minutes from the Reserve Bank of Australia?s November 6th meeting offered little hawkish or dovish surprise.
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Crude oil futures are tumbling $0.97 to $56.23 barrel after climbing $0.52 to $57.20 a barrel on Monday. Meanwhile, after edging up $2.30 to $1,225.30 ounce in the previous session, gold futures are rising $3.30 to $1,228.60 an ounce.
On the currency front, the U.S. dollar is trading at 112.32 yen compared to the 112.55 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1411 compared to yesterday?s $1.1454.
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