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Wall Street Sees Red After Monday's Deep Plunge


The reverberation of Monday's deep plunge in U.S. major averages and Dow Jone's worst point decline ever on a single day, could be felt on Tuesday too. U.S. Futures Index were in the red in early hours and Wall Street also is expected to open in negative territory. Asian shares were reacting to the fall and ended lower. European shares are also trading lower.

The market has not much digested White House's response that its focus is on long-term economic fundamentals, which remain exceptionally strong.

JOLTS report and International Trade data are the major announcements on the day.

As of 6.35 am ET, the Dow futures were slipping 242.00 points, the S&P 500 futures were shedding 13.75 points and the Nasdaq 100 futures were slipping 36.50 points.

U.S. stocks closed in the red. The Dow Jones Industrial Average fell 4.6%, or 1,175 points, to 24,346.
The S&P 500 fell 4.1%, or 113 points, to 2,649. The Nasdaq Composite Index fell 273 points, or 3.8%, to 6,967. The Stock-market volatility index (VIX) jumped 85% in its biggest 1-day leap ever.

On the economic front, the Commerce Department's International Trade data for December will be issued at 8.30 am ET. The economic analysts are looking for consensus of a deficit of $51.9 billion, compared to deficit of $50.5 billion in the previous month.

The Redbook data for the week will be released at 8.55 am ET. The prior week's store sales were up 3.2 percent.

The Bureau of Labor Statistics' Job Openings and Labor Turnover Survey or JOLTS report for December is expected at 10.00 am ET. The consensus is for 5.900 million, slightly up from 5.879 million in the prior week.

Treasury's Separate Trading of Registered Interest and Principal of Securities or STRIPS is expected at 3.00 pm ET.

Three year Note auction will be held at 1.00 pm ET.

St. Louis Federal Reserve Bank President James Bullard will present on U.S. Economy and Monetary Policy at the 29th Annual Gatton College of Business and Economics Economic Outlook Conference in Lexington, Kentucky, with audience Q&A at 8.50 am ET.

In the corporate sector, Gartner Inc. (IT) reported an increase in fourth quarter profit to $108.04 million, or $1.17 per share. This was up from $81.22 million, or $0.97 per share a year ago. Revenue for the quarter rose 44.3 percent to $1.01 billion, up from $0.70 billion last year.

British energy giant BP Plc reported a replacement cost loss in its fourth quarter, compared to prior year's profit, hurt by charges related to US Tax reforms and Gulf of Mexico Oil Spill. Sales climbed with increased production and prices. Sales and other operating revenues climbed to $67.82 billion from last year's $51.01 billion. BP announced a quarterly dividend of 10 cents per ordinary share or $0.600 per ADS, which is expected to be paid on March 29, 2018.

Asian stocks fell heavily, following the record plunge by Dow Jones Industrial Average and other major averages on Monday. Chinese benchmark Shanghai Composite index fell 116.84 points or 3.35 percent to 3,370.65, marking its biggest single-day drop in nearly two years, while Hong Kong's Hang Seng index finished 1618.81 points or 5.02 percent at 30.626.41.

Japanese shares nosedived. The benchmark Nikkei dropped more than 1,600 points before recouping some losses to end the session down 1,071 points or 4.73 percent at 21,610.24, marking its steepest fall since June 2016. The broader Topix index closed 4.40 percent lower at 1,743 amid heavy selling across the board.

Australian shares suffered their biggest single-day loss in more than two years. The benchmark S&P/ASX200 index tumbled 192.90 points or 3.20 percent to finish at 5,833.30, while the broader All Ordinaries ended down 198.20 points or 3.23 percent at 5,930.20.

Australia's central bank today decided to leave its key interest rate unchanged at a record low, as widely expected.

European shares are trading lower. The CAC 40 of France is down 110.56 points or 2.04 percent. DAX of Germany is declining 234.19 points or 1.87 percent. FTSE 100 of England is down 152.80 points or 2.08 percent. Swiss Market Index is slipping 161.59 points or 1.79 percent.

Euro Stoxx 50, that provides a Blue-chip representation of supersector leaders in the Eurozone, is down 2.11 percent.

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