By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures steadily trimmed
losses Friday, after import and export price data showed inflation
remains tame, largely due to falling oil prices.
Choppy trading comes after three consecutive days of
triple-digit swings in stocks.
The whip-lashing equity moves have been characterized by a spike
in volatility (a measure of fear in the markets) on concerns about
slowing global growth.
Futures for the Dow Jones Industrial Average (DJZ4) were 27
points, or 0.2%, lower at 16,583 and those for S&P 500 index
(SPZ4) were off 2 points, or 0.1%, to 1,923.10. Futures for the
Nasdaq 100 index (NDZ4) sank 36 points, or 0.7%, to 3,943.25.
Fresh in the mind of investors on Friday will be Thursday's
selloff that sent the Dow Jones Industrial Average (DJI) tumbling
335 points, its worst one-day point slide in more than a year. The
S&P 500 (SPX) was knocked down by 2.1% and the Nasdaq Composite
(RIXF) was kicked lower by 2.2%. The indexes were each on track for
declines of at least 2%.
Meanwhile, the widely watched CBOE VIX (VIX) a gauge of current
fear in the market on Thursday, surged 23% to mark its highest
level since February.
"Bad economic data is now being viewed as bad and the dovish
signals from central banks are now being taken as a sign of
weakness rather than a reason to ramp up equities," wrote Jonathan
Sudaria, a dealer at Capital Spreads, in Friday note that
highlighted the rout in European stocks. The Stoxx Europe 600 was
looking at its biggest weekly loss in more than a year, with
Germany's economic ministry saying Friday the growth outlook for
Europe's largest economy is dimming.
Concerns about dampened demand for oil continued to pressure
crude futures on Friday. U.S. oil futures (CLX4) dropped 1.1%,
below $85 a barrel after closing Thursday's session at their lowest
level since December 2012. Brent futures remained below $90 a
barrel.
"Going into the weekend with so much uncertainty in the air will
only further fuel traders compulsion to get out of risky assets and
it would take a miracle for the bulls to salvage anything today,"
said Sudaria.
Data: The prices paid for imported goods fell 0.5% in September
and declined for the third straight month, another sign that U.S.
inflationary pressures remain muted. The main reason: falling
worldwide oil prices.
At 2 p.m., Richmond Fed President Jeffrey Lacker will speak at
the annual meeting of the National Conference of Bankruptcy Judges.
At the same time, Kansas City Fed President Esther George is
scheduled to speak at McCook Community College in McCook, Neb.
George isn't a voting member of the Fed policy committee this
year.
Stocks to watch: Tesla Motors Inc. (TSLA) late Thursday unveiled
its latest Model S car. But shares slid 5.4% premarket.
Symantec Corp. (SYMC) shares were off 0.9% before market open.
The security software maker late Thursday said it plans to split in
two publicly traded companies.
Juniper Networks Inc. (JNPR) fell 5.4% premarket after late
Thursday's warning that fiscal third-quarter revenue and adjusted
earnings are likely to come in below its previous estimates.
Exact Sciences Corp. (EXAS) shares rallied 35% ahead of the bell
as the company's Cologuard test to detect colorectal cancer will be
covered by Medicare.
Alpha Pro Tech Ltd. (APT) is up 33% and Lakeland Industries Inc.
(LAKE) is up 8% in premarket following gains from Thursday amid
rising Ebola outbreak concerns. Alpha Pro Tech's infection control
unit makes face masks and eye shields, and Lakeland makes
protective clothing for health care and first responders.
Other markets: Gold futures (GCZ4) shed about $2 an ounce. The
dollar (DXY) was slightly higher against its rivals after
Thursday's fall to a fresh three-week low. In Asia, Hong Kong's
Hang Seng Index and Tokyo's Nikkei Average fell 1.9% and 1.2%,
respectively.
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