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US Stocks Set For Lower Open on Penultimate Day of The Year Amid Weaker Oil


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U.S. stocks were set to open in the red Wednesday as crude oil prices once again fell to 11-year lows and as International Monetary Fund managing director Christine Lagarde painted a bleak picture of the outlook for 2016.

According to German newspaper Handelsblatt, Lagarde said weakness in financial sectors as well as emerging markets would weigh on global growth and called for accommodative monetary policy for most highly developed economies, except the U.S. and possibly the U.K. She said that the prospect of higher rates in the U.S. and a slowdown in China contributed to uncertainty and higher risk to global economies.

West Texas Intermediate crude oil was down nearly 3% recently to $36.93 recently while Brent crude shed 2% to $37.04.

In economic data, the November pending home sales index out at 10:00 a.m. E.T. is expected to have gained 0.5% over the slight 0.2% rise in October. The consensus range is between no change and a 2.4% increase, according to data compiled by Econoday.

In equities, KalaBios Pharmaceuticals ( KBIO ) filed for bankruptcy. The company's shares have been halted since Dec. 17 when CEO Martin Shkreli was arrested for allegedly taking money from one of his companies to pay for losses at another. The company fired Shkreli. Nasdaq is seeking to delist the company, which yesterday was granted a hearing on Feb. 25 to appeal the delisting.

Also, Apple ( AAPL ) shares were down 0.3% in pre-market trade after Italian newspaper La Repubblica reported that the company agreed to pay $347 million in an Italian tax evasion case. The newspaper said the company was accused of avoiding about 800 million euros ($874 million) in taxes from 2008 to 2013.

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial down 0.27%

-S&P 500 futures down 0.19%

-Nasdaq 100 futures down 0.29%

-Nasdaq 100 pre-market indicator down 0.10%

GLOBAL SENTIMENT

Nikkei up 0.27%

Hang Seng down 0.53%

Shanghai Composite up 0.26%

FTSE-100 down 0.60%

DAX-30 down 1.08%

PRE-MARKET SECTOR WATCH

(+/-) Large cap tech: mixed

(+/-) Chip stocks: mixed

(+/-) Software stocks: unchanged

(-) Hardware stocks: unchanged to lower

(-) Internet stocks: lower

(+/-) Drug stocks: mixed

(-) Financial stocks: unchanged to lower

(+/-) Retail stocks: unchanged

(-) Industrial stocks: unchanged to lower

(+/-) Airlines: unchanged

(+/-) Autos: unchanged

UPSIDE MOVERS

(+) SUNE (+6.6%) Strikes deal on debt for renewable energy asset equity membership, TERP shares

(+) OHGI (+25.0%) Upgrades VoIP Aishuo amid overwhelming growth

(+) FCS (+3.2%) Gets $21.70 per share buyout offer

(+) NDRM (+3.8%) Starts enrollment in phase 2 Parkinson's drug trial

(+) SKUL (+4.8%) Oppenheimer initiates with outperform rating, $8 price target

DOWNSIDE MOVERS

(-) PBY (-2.9%) Says Bridgestone won't counter IEP bid

(-) NURO (-2.6%) To raise $13.8 million in private placement of preferred stocks, warrants

(-) FB (-0.3%) Court allows investors to pursue group claims in IPO suit

(-) STEM (-5.3%) H.C. Wainright cuts PT to $1.50 vs $2.10, reiterates buy rating

(-) DDD (-0.7%) Needham & Co cuts PT to $14 vs $15, reiterates buy rating

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Investing , Commodities
Referenced Symbols: AAPL


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