Futures slide as U.S. crude crashes below zero

spike

The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri

(Reuters) – U.S. stock index futures resumed their slide on Tuesday as gloomy quarterly earnings reports and a historic plunge in U.S. crude prices to below zero raised the specter of a deep global recession in the coming months.

Wall Street fell on Monday as WTI crude CLc1 crashed to minus $40 for the first time in history as sweeping restrictions to contain the coronavirus hits oil demand. With nowhere to store the excess capacity, traders fled from contracts that would deliver barrels of oil to them in May.

Exxon Mobil Corp (XOM.N) shed 3.7% in premarket trading and Chevron Corp (CVX.N) slipped 4.0% as the front month May WTI CLc1 contracts continued to trade below $0 on Tuesday. June contracts also fell by $4, signalling more weakness in demand in the face of a near halt in global activity. [O/R]

Other oil-related companies including Apache Corp (APA.N), Halliburton Co (HAL.N), ConocoPhillips (COP.N), Schlumberger (SLB.N) and Occidental Petroleum Corp (OXY.N) tumbled between 6.3% and 11%.

Coca-Cola Co (KO.N) provided the latest evidence of the damage wrought by the pandemic, saying its current-quarter results would take a severe hit from low demand for sodas.

Investors will also keep a close eye on first-quarter earnings from major U.S. companies including Texas Instruments (TXN.O) and Travelers Companies (TRV.N) later in the day.

At 06:29 a.m. EDT, Dow e-minis 1YMcv1 were down 430 points, or 1.83%, S&P 500 e-minis EScv1 were down 39.25 points, or 1.41% and Nasdaq 100 e-minis NQcv1 were down 71.25 points, or 0.82%. SPDR S&P 500 ETFs (SPY.P) were down 1.59%.

The S&P 500 index .SPX closed down 1.79% at 2,823.16​ on Monday.

Reporting by C Nivedita in Bengaluru; Editing by Saumyadeb Chakrabarty

Source Article

Next Post

Coronavirus live updates: Germany cancels Oktoberfest

This is CNBC’s live blog covering all the latest news on the coronavirus outbreak. This blog will be updated throughout the day as the news breaks. Global cases: More than 2.4 million Global deaths: More than 170,399 Most cases reported: United States (787,901), Spain (200,210), Italy (181,228), France (156,493), and Germany (147,065).  […]