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 * The sharp drop in oil prices adds to investor uncertainty as the
U.S. Federal Reserve prepares to raise interest rates for the first
time since June 2006 at its meeting next week.
* Adding to the somber mood, China's yuan fell to its lowest in
4-1/2 years on concerns about the country's slowing economy and
expectations of a U.S. rate hike.
* Global shares were lower amid concerns that weakness in the
Chinese currency could weigh on the global economy and on companies
with strong export ties to China.
* Investors are also awaiting U.S. data, which could cement
expectations that the Fed is gearing up to hike rates at its Dec.
15-16 meeting.
* Fed fund futures place an 85 percent chance of a hike. A recent
Reuters poll also showed that all but one of 18 brokerages that deal
directly with the central bank expect a rate increase.
* U.S. retail sales likely picked up in November, which could ease
concerns about tepid consumer spending in the fourth quarter. A
Reuters survey of economists shows retail sales likely increased 0.3
percent last month, after inching up 0.1 percent in October. That
data is expected at 8:30 a.m. ET (1330 GMT).
* Market analysts expect the University of Michigan's preliminary
consumer sentiment index to increase to 92.0 in December from 91.3.
The report will be released at 10 a.m. ET.
* DuPont shares <DD.N> were down 4.8 percent at $71.00 in premarket
trading after the company agreed to merge with Dow Chemical <DOW.N>
in a deal valuing the combined entity at $130 billion. Dow was up
1.71 percent at $55.78.
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* United Technologies <UTX.N> was up 1.42 percent at $95.20 after
announcing a $1.5 billion restructuring plan to reduce costs.
* SunEdison <SUNE.O> was up 6.4 percent at $4.35, a day after the
company said it would sell wind assets for $209 million.
Futures snapshot at 6:56 a.m. ET:
* S&P 500 e-minis <ESc1> were down 15.75 points, or 0.77 percent,
with 124,099 contracts traded.
* Nasdaq 100 e-minis <NQc1> were down 39.25 points, or 0.85 percent,
on volume of 16,016 contracts.
* Dow e-minis <1YMc1> were down 156 points, or 0.89 percent, with
14,529 contracts changing hands.
(Reporting by Tanya Agrawal, Editing by Anil D'Silva)
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