Futures Drop as Oil Falls to 7-Year Low; DuPont, Dow Detail Merger
U.S. stock futures trimmed a fraction of their earlier losses on bullish inflation and retail sales data, but remained under intense selling pressure as a result of another sell-off in oil, and losses across Europe and most of Asia.
West Texas Intermediate was down another 1% as supply pressures coupled with lingering concerns about global economic growth drove oil futures to a 7-year low. As a result, Dow futures were 160 points below fair value, underperforming their benchmark peers.
The freefall in equities is upstaging confirmation of a $130 billion merger between chemical giants Dow Chemical ( DOW ) and DuPont ( DD ). The new company will be called Dow DuPont and will be split into three publicly-traded companies.
Friday's economic calendar kicked off with a 0.3% increase in the core and nominal producer price index, beating expectations for the core to gain 0.1% and the nominal at 0.0%.
November retails sales increased 0.2%, just slightly below the estimated +0.3%. Excluding sales for autos, retail sales were up 0.4% and increased 0.5% excluding both auto and gas.
The remaining data includes October business inventories and the preliminary University of Michigan consumer sentiment survey.
-Dow Jones Industrial down 0.98%
-S&P 500 futures down 0.74%
-Nasdaq 100 futures down 0.82%
Nikkei up 0.97%
Hang Seng down 1.11%
Shanghai Composite down 0.58%
FTSE-100 down 1.22%
DAX-30 down 1.61%
PRE-MARKET SECTOR WATCH
(+/-) Large cap tech: Lower
(+/-) Chip stocks: Lower
(+/-) Software stocks: Lower
(+/-) Hardware stocks: Lower
(+/-) Internet stocks: Lower
(+/-) Drug stocks: Lower
(+/-) Financial stocks: Lower
(+/-) Retail stocks: Lower
(+/-) Industrial stocks: Lower
(+/-) Airlines: Lower
(+/-) Autos: Lower
(+) FNSR (+11.68%) Reported better-than-expected fiscal Q2 results
(+) PBMD (+7.50%) Announced progress in collaboration with NEC Corp and Yamaguchi Univ in Japan
(+) SUNE (+7.09%) Acquired Bingham and Oakfield wind farm assets for $209 million in equity
(-) UDF (-16.14%) Allegations that the "fund is trying to unlawfully profit by manipulating depressed prices."
(-) ARIA (-2.52%) Lowered its Iclusig revenue forecast to $110 million from $115 million
(-) NDSN (-3.77%) Reported weaker than expected earnings for Q4 and downbeat forecast for current quarter
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