U.S. Stock Futures Sink As Fears Of Global Recession Rise. Stocks to Watch: SIRI, NFLX, AAPL, BAC, FIO, CEDC, DELL
Futures on the Dow Jones Industrial Average declined 165 points to 11,602 and those on the Standard & Poor’s 500-stock index dropped 20.20 points to 1,193.7. Nasdaq 100 futures slumped 24.50 points to 2,225.2.
European equity markets also fell sharply in midday trade, with the Stoxx Europe 600 index was down 2.4%.
In the currency markets, the euro dropped 0.5% to $1.3453. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, gained 0.5% to 78.392.
Most commodity futures posted losses. Crude oil for January delivery dropped $1.77 to $95.90 a barrel in electronic trading.
The blue-chip Dow index managed some small gains on Friday, but posted a drop of 2.9% last week.
Investors are worried this week as the media is reporting that the Obama-appointed Congressional “Super Committee” has failed to reach an agreement on a on a plan to lower the U.S. deficit by at least $1.2 trillion over the next 10 years. Republicans and Democrats in Congress are bitterly divided on the best strategy for reducing the nation’s tremendous deficit.
“Expect the wrangling on Capitol Hill to dominate in the U.S. session,” said Kathleen Brooks, research director at Forex.com, in a note. “The deadline to agree to more budget cuts is this Wednesday; if that is missed, as is looking incredibly likely, then it is giving the wrong message to the markets,” she said.
Also the European debt crisis continues to be a looming factor of dread for investors. The lack of leaders worldwide to make substantial and meaningful decisions to push the world’s economies forward is a cause of great concern for financial markets. Moody’s Investors Service is warning that France’s credit rating is on the brink of a downgrade.
Also, over the weekend, China’s Vice Premier Wang Qishan said over the weekend that the world was likely to experience a long economic recession, according to a report by state-run Xinhua News Agency.
The English FTSE 100 fell 2.2% to 5,250, and the German DAX slid 2.7% to 5,646.
In Asia, the Japanese Nikkei 225 dipped 0.32% to 8,348 and the Chinese Hang Seng slid to1.4%18,226.
Stocks to watch today include Sirius XM Radio Inc. (NASDAQ:SIRI), Netflix, Inc.(NASDAQ:NFLX), Apple Inc. (NASDAQ:AAPL), Bank of America Corp (NYSE:BAC), Fusion-io, Inc. (NYSE:FIO), Central European Distribution Corp. (NASDAQ:CEDC) and Dell INc. (NASDAQ:DELL)
Sirius XM Radio Inc. (NASDAQ:SIRI) is down 1.12% at 1.78 in pre-market trading this morning. SIRI has traded over 500 thousand shares so far in early trading and averages over 60 million shares in volume daily. SIRI has been trending upward since last Thursday when it was trading around $1.60. THe company has a current market cap of 6.68 billion.
Netflix, Inc. (NASDAQ:NFLX) is down 1.54% at $76.86 in pre-market trading. NFLX has traded 5.6 thousand shares in pre-market trading so far and usually trades 9.78 million shares daily. NFLX hit a peak of over $92 this month, but has since fallen. The company has a current market cap of 4.10 billion.
Apple Inc. (NASDAQ:AAPL) is down nearly 1% in pre-market trading at $371.22. AAPL is went down about $15 in the last two days of trading last week. The stock has traded 92 thousand shares so far in pre-market trading and usually trades 18.34 million shares. The company has a current market cap of 348.47 billion.
Bank of America Corp. (NYSE:BAC) is down 1.73% in pre-market trading at $5.68. BAC has traded 1.5 million shares in pre-market trading and averages 260.58 million shares daily. BAC declared a quarterly dividend of $0.01 per share, payable on December 23, 2011. BAC was down more than $0.20 last week. The company has a current market cap of 58.59 billion.
Fusion-io, Inc. (NYSE:FIO) is down 2.78% in pre-market trading at $38.50. FIO has traded 4.4 thousand shares in pre-market trading and averages 1.27 million shares daily. FIO closed the week higher last week by nearly $6. The company has a current market cap of 3.30 billion.
Central European Distribution Corp. (NASDAQ:CEDC) is down nearly 6% in pre-market trading at $2.90. CEDC fell sharply on Friday from $3.75 to just over $3. The stock trades on average 2.69 million shares a day. The company has a current market cap of 223.28 million.
Dell Inc. (NASDAQ:DELL) is unchanged in pre-market trading at $14.90. Dell ended the week slightly lower last week. DELL trades on average 24.11 million shares daily. The company has a current market cap of 27.18 billion.