U.S. stock futures were significantly lower this morning, indicating a second day of possible sharp sell-off for stocks. Intel's disappointing results Tuesday after the close renewed concerns that the U.S. economy would fall into a recession, which would naturally affect corporate profits. Some inflation data is also due out today among other reports.On Tuesday, investors digested very slow December retail sales, which combined with the turmoil in financials as Citigroup reported a record $9.8 billion loss , caused investors taking their money away.The Dow industrials lost 277 points, or 2.17%, the S&P 500 was down 35 points, or 2.49%, and the Nasdaq Composite fell 60 points, or 2.45%.
At 8:30 a.m., consumer price index for December is due out. This key measure of inflation is expected to rise 0.2% for both CPI and core-CPI, which excludes food and energy costs.
Just before the opening bell, December Industrial Production and Capacity Utilization will be reported.
At 2:00 p.m., the Federal Reserve will release its Beige Book of economic conditions.
At 10:30 a.m., weekly crude inventories are due. Oil prices continued to fall Wednesday as concern a slowing U.S. economy will lower energy demand and ahead of the inventories report which traders expect it show a rise in domestic gasoline stockpiles.
Overseas, Asian markets plunged Wednesday on the same concern. Since the U.S. is such a vital export market, a slowing U.S. economy does not bode well for companies and that could potentially lead to a global slowdown. Hang Seng index sank 5.4% and Tokyo's Nikkei dropped 3.4%.
European markets are also trading lower.
The biggest news this morning --at least so far -- comes from Intel Corp. (NASDAQ: INTC). The world's largest chipmaker, reported quarterly results after the close Tuesday that missed analyst expectations. Intel's stock plunged more than 14% following the results as the outlook the company gave was also weak. Shares were down 12.7% in premarket as of 7:31 a.m., this morning.
JPMorgan Chase & Co. (NYSE: JPM) reported this morning a 34% drop in profit, more than analysts estimated, after $1.3 billion of writedowns for subprime-mortgage investments. Fourth-quarter net income declined to $2.97 billion, or 86 cents a share, below Bloomberg estimated profit of 92 cents. JPMorgan took a $1.3 billion writedown. Still JPM shares are up 1.2% in premarket trading.
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