Tuesday February 9th

9-02-2016

Dow futures drop 150 as oil, growth concerns weigh

U.S. stock index futures fell on Tuesday amid a slew of earnings releases, while oil and global growth concerns weighed on investors. Earnings due on Tuesday included Coca-Cola, Viacom, and Spirit Airlines. Investors will also eye Disney's earnings to ascertain the impact of "The Force Awakens" and the health of its cable bundle and theme park division. Dow futures fell 150 points as oil pared earlier gains. WTI gained slightly early Tuesday, but had erased most of its initial gains. Brent oil turned negative after holding slightly higher. Early in the day, the International Energy Agency said that oil demand growth would fall further in 2016, casting doubt on hopes that oil prices might have bottomed. The only U.S. data of note out on Tuesday is wholesale inventories and JOLTS (Job Openings and Labor Turnover Survey), both for December and out at 10 a.m. ET. President Barack Obama's Federal budget for the fiscal year of 2017 will be published at 11 a.m. Proposals include a $10-a-barrel tax on crude oil, but may garner little attention given the presidential election scheduled for November. On Monday, Michael Bloomberg, the former New York mayor, said he was considering running for U.S. president, potentially adding a new dimension to the 2016 presidential race. Federal Reserve Chair Janet Yellen is due to testify before Congress on Wednesday and Thursday. U.S. stocks indexes were sharply lower for most of Monday, but closed off session lows after a late rally in shares of energy companies. Australian and Japanese markets closed sharply lower on Tuesday, after another sell-off in U.S. and European stocks overnight as many Asian markets remained shut for the Lunar New Year. China and Taiwan are closed for the week, while markets in Hong Kong, Singapore, South Korea, Malaysia and Vietnam are closed today. The Nikkei 225 tumbled, closing down 918.86 points, or 5.40 percent, at 16,085.44, falling for five of the past six sessions. old steadied on Tuesday, after touching its highest level in more than seven months the previous day as rising concerns about the global economic outlook hammered shares and sent investors rushing into safer assets. While those concerns persisted, European shares stabilized and gold saw some profit taking after failing to push through key resistance at $1,200 an ounce. Spot gold was trading at $1,194.96 an ounce, up 0.35 percent, after rising to $1,200.60 on Monday, its strongest since June 22 last year.