Markets

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%

SENTIMENT

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

UPSIDE MOVERS:

(+) 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

DOWNSIDE MOVERS:

(-) 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

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

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

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