| | The major U.S. index futures are pointing to a lower opening on Monday, with stocks likely to see further downside following the sell-off seen last Friday.
The downward momentum on Wall Street comes amid lingering concerns about global economic growth as well as continued uncertainty about trade between the U.S. and China.
Traders may also be on edge ahead of the Federal Reserve?s highly anticipated monetary policy announcement scheduled for Wednesday.
The Fed is widely expected to raise interest rates by another quarter point, although traders are likely to closely scrutinize the central bank?s accompanying statement and forecasts for clues about future rate hikes.
Negative sentiment may also be generated in reaction to a report from the New York Federal Reserve showing a substantial slowdown in the pace of growth in regional manufacturing activity in the month of December.
Stocks have recently seen considerable volatility, however, suggesting an early move to the downside may not be the end of the day?s story for the markets.
Following the lackluster performance in the previous session, stocks moved sharply lower over the course of the trading day on Friday. The Dow and the S&P 500 tumbled to their lowest closing levels in seven and eight months, respectively.
The major averages climbed off their worst levels going into the close but remained firmly negative. The Dow plunged 496.87 points or 2 percent to 24,100.51, the Nasdaq nosedived 159.67 points or 2.3 percent to 6,910.67 and the S&P 500 plummeted 50.59 points or 1.9 percent to 2,599.95.
With the steep losses on the day, the major averages also moved lower for the week. The Nasdaq slid by 0.8 percent, while the Dow and the S&P 500 slumped by 1.2 percent and 1.3 percent, respectively.
The sell-off on Wall Street came amid renewed concerns about the outlook for global economic growth following the release of data showing disappointing industrial output and retail sales growth in China.
The latest batch of economic data showed Chinese industrial output grew at its slowest pace in nearly three years, increasing by 5.4 percent in November after growing by 5.9 percent a month earlier.
Meanwhile, retail sales in China grew 8.1 percent in November, the weakest growth since 2003. In October, retail sales were up 8.6 percent.
The slower pace of industrial output and retail sales growth was partly due to the impact of the ongoing trade dispute with the U.S.
President Donald Trump appeared to take credit for China's disappointing economic data in a post on Twitter on Friday.
"China just announced that their economy is growing much slower than anticipated because of our Trade War with them," Trump tweeted. "U.S. is doing very well. China wants to make a big and very comprehensive deal. It could happen, and rather soon!"
Trump seemed to reference China's recently confirmed decision to temporarily lower tariffs on vehicles made in the U.S. to 15 percent from 40 percent.
A report showing growth in the eurozone private sector has decelerated to its slowest pace in more than four years in December added to the negative sentiment.
On the U.S. economic front, the Commerce Department released a report showing slightly weaker than expected retail sales growth in November due to a steep drop in sales by gas stations, although underlying retail sales growth remained strong.
The Commerce Department said retail sales edged up by 0.2 percent in November after spiking by an upwardly revised 1.1 percent in October.
Economists had expected retail sales to rise by 0.3 percent compared to the 0.8 percent increase originally reported for the previous month.
Meanwhile, the report said closely watched core retail sales, which exclude autos, gasoline, building materials and food services, increased by 0.9 percent in November after climbing by an upwardly revised 0.7 percent in October.
"Along with the continued strength of the labor market, the boost to real incomes from the recent plunge in gasoline prices appears to be providing a big support to spending growth, which could continue for a few more months," said Andrew Hunter, Senior U.S. Economist at Capital Economics.
He added, "Nonetheless, with the earlier boost from tax cuts now fading and rising interest rates likely to become an increasing drag, we still expect consumption growth to slow next year."
A separate report from the Federal Reserve showed a much bigger than expected increase in industrial production in November, but manufacturing output was unchanged.
Oil service stocks showed a substantial move to the downside on the day, extending a recent sell-off. The Philadelphia Oil Service Index plunged by 4.3 percent to its lowest closing level in fifteen years. The continued weakness among oil service stocks came amid a steep stop by the price of crude oil.
Significant weakness was also visible among pharmaceutical stocks, as reflected by the 3.4 percent slump by the NYSE Arca Pharmaceutical Index
Johnson & Johnson (JNJ) posted a steep loss after a report from Reuters said the healthcare giant knew for decades that its talcum baby powder supply contained asbestos.
Natural gas, software, retail and gold stocks also saw considerable weakness on the day amid a broad based sell-off on Wall Street.
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Business activity in the New York manufacturing sector saw substantially slower growth in the month of December, according to a report released by the Federal Reserve Bank of New York.
The New York Fed said its general business conditions index tumbled to 10.9 in December after rising to 23.3 in November.
While a positive reading still indicates growth in regional manufacturing activity, economists had expected the index to dip to 20.0.
At 10 am ET, the National Association of Home Builders is scheduled to release its report on homebuilder confidence in the month of December.
The NAHB?s housing market index is expected to come in unchanged in December after plunging by eight points to 60 in November.
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Shares of Best Buy (BBY) are moving significantly lower in pre-market trading after Bank of America Merrill Lynch downgraded its rating on the consumer electronic retailer?s stock to Underperform from Neutral and lowered its price target to $50 per share from $30 per share.
BAML analyst Curtis cited ?deceleration in industry growth trends and continued caution on key product categories such as TVs, Apple products and gaming.?
PG&E Corp. (PCG) may also come under pressure on news the California Public Utilities Commission (CPUC) is considering penalties against the utility for systemic violations of rules to prevent damage to natural gas pipelines during excavation activities.
On the other hand, shares of Jack In The Box (JACK) are moving notably higher in pre-market trading after the restaurant chain said it is exploring a range of strategic and financing alternatives to maximize shareholder value, including a sale of the company.
Athletic apparel maker Lululemon (LULU) may also see initial strength after Stifel Nicolaus upgraded its rating on the company?s stock to Buy from Hold. | | | | | 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 Monday, as global growth worries linger and the dollar weakens slightly ahead of key central bank meetings this week, with the Fed widely expected to raise its benchmark interest rates Wednesday by 25 basis points.
Traders are also digesting media reports suggesting that the Italian government has forged a deal with populist leaders to submit a revised budget proposal to the European Commission.
Elsewhere, U.K. Prime Minister Theresa May faces parliament today and it is expected to urge Members of Parliament not to "break faith with the British people" by demanding a second referendum.
While the French CAC 40 Index has dropped by 0.8 percent, the German DAX Index and the U.K.?s FTSE 100 Index are both down by 0.7 percent.
The dollar weakened slightly on fears of a possible U.S. government shutdown at midnight on Friday over security on the border with Mexico.
Asos shares have plummeted in London after the British retailer warned of lower profits this financial year. Next Plc and Marks & Spencer have also moved notably lower along with German online fashion retailer Zalando.
Acacia Mining has also slumped after the company said it has been in contact with the SFO about allegations of corrupt activities in Tanzania, which are the subject of proceedings in Tanzania.
On the other hand, mining giant BHP has rallied as it announced a special dividend after selling its U.S. shale assets.
Swiss engineering group ABB has also risen after it agreed to sell 80.1 percent of its Power Grids division to Japan's Hitachi.
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Asian stocks ended broadly higher on Monday as investors picked up beaten-down shares after two weeks of losses driven by concerns over trade and the global economic growth outlook.
The U.S Federal Reserve's monetary policy meeting is scheduled for Wednesday, with many expecting an increase in the benchmark interest rate by 25 basis points to between 2.25 percent and 2.5 percent. The Bank of Japan and the Bank of England will also hold monetary policy meetings on Thursday.
Brexit developments also remained in focus after U.K. Prime Minister Theresa May attacked one of her predecessors, accusing Tony Blair of "undermining" the Brexit talks by calling for another referendum.
May reportedly called his comments an "insult to the office he once held" and said Members of Parliament could not "abdicate responsibility" to deliver Brexit by holding a new poll.
Chinese shares ended slightly higher as investors awaited cues from the closely watched annual Central Economic Work Conference later this week.
The benchmark Shanghai Composite Index edged up 4.23 points or 0.2 percent to 2,597.97, although Hong Kong's Hang Seng Index finished just below the unchanged line at 26,087.98.
Japanese shares ended notably higher despite lingering concerns over global growth. The Nikkei 225 Index rose 132.05 points or 0.6 percent to 21,506.88 after tumbling 2 percent last Friday as China reported a set of weak data. The broader Topix Index closed 0.1 percent higher at 1,594.20.
Electronic makers and technology stocks led the surge, with Advantest Corp, TDK Corp and Tokyo Electron all rising around 2 percent. Utility Tokyo Electric Power jumped 3 percent and Chubu Electric Power added 1.9 percent.
On the other hand, discount children's wear retailer Nishimatsuya Chain slumped 8.6 percent after slashing its annual profit forecast.
Australian markets posted strong gains as a mid-year update showed that the budget would soon return to surplus for the first time in a decade, leaving room for tax cuts ahead of elections.
The benchmark S&P/ASX 200 Index climbed 56.30 points or 1 percent to finish at 5,658.30, while the broader All Ordinaries Index ended up 54.10 points or 1 percent at 5,732.90.
Mining giant BHP rallied 3.5 percent as it announced a special dividend after selling its U.S. shale assets. Rival Rio Tinto advanced 2.2 percent after it completed the $500 million sale of its French aluminum smelter, freeing up cash the company said it would return to shareholders.
Mineral Resources soared 10.6 percent after it announced an A$1.6 billion partnership with global lithium producer Albemarle Corporation.
Energy stocks closed mostly higher despite crude oil prices ending sharply lower on Friday. Austal jumped 3.8 percent after it won a contract to make another two combat vessels for the U.S. Navy.
Meanwhile, banks ANZ, NAB and Westpac dropped between 0.6 percent and 1.6 percent on concerns over the global growth outlook.
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Crude oil futures are rising $0.18 to $51.38 a barrel after tumbling $1.38 to $51.20 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,245.30, up $3.90 from the previous session?s close of $1,241.40. On Friday, gold fell $6.
On the currency front, the U.S. dollar is trading at 113.14 yen compared to the 113.39 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1350 compared to last Friday?s $1.1306.
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