drop on mounting concerns over global slowdown
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[February 08, 2016]
By Abhiram Nandakumar
(Reuters) - U.S. stock index futures were
lower on Monday, with the Dow Jones industrial average slipping nearly
200 points, as fears of a global economic slowdown worsening rattle
* U.S. stocks are coming off Friday's massive tech-led selloff that
pushed the Nasdaq to its lowest close since October 2014. Tech
stocks were again among the top losers in premarket trading on
* Crude oil prices fell more than 2 percent after a meeting between
Saudi Arabia and Venezuela failed to reassure investors of measures
to help prices.
* Demand for crude has been seen as a barometer for global economic
health, and markets across the world have tracked the rise and fall
in the price of the commodity this year.
* Global markets were lower, as was the dollar index <.DXY>.
However, volumes were thin with some Asian markets closed for the
Lunar New Year.
* A mixed U.S. jobs report on Friday, with a lower-than-expected job
additions in January offset by falling unemployment and higher
wages, added to investors' uncertainty.
* Economists said jobs report suggested a March interest rate
increase from the Federal Reserve could not be completely ruled out.
Traders have priced in a less than 50 percent chance of a hike in
December, according to the CME Group's FedWatch program.
* Shares of Cognizant were down 7 percent at $54.45 premarket after
the IT services provider's forecast missed estimates.
* Index heavyweights Amazon, Alphabet, Netflix and Facebook were
down between 2.5-3.5 percent. The stocks also led the market rout on
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* S&P 500 companies on average are expected to report a 4.1 percent
fall in quarterly profit, as companies wilt under tepid global
demand and a strengthening dollar.
Futures snapshot at 7:06 a.m. ET:
* Dow e-minis were down 192 points, or 1.19 percent, with 47,816
contracts changing hands.
* S&P 500 e-minis were down 23 points, or 1.23 percent, with 280,915
* Nasdaq 100 e-minis were down 80 points, or 1.99 percent, on volume
of 58,791 contracts.
(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Savio
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