Dow futures plunge 400 points after data; 10-year yield below 2%

finance.yahoo.com

U.S. stock index futures indicated a sharply lower open on Friday after disappointing U.S. data and the Chinese stock market and crude prices plunged.

Dow futures fell more than 400 points after retail sales declined 0.1 percent in December. Ex-autos, retail sales also fell 0.1 percent. The Producer Price Index fell 0.2 percent in December after rising 0.3 percent in November.

January Empire manufacturing was minus 19.4. 

Treasury yields fell, with the 10-year yield dipping below 2 percent and the 2-year yield near 0.83 percent. The U.S. dollar index traded about 0.4 percent lower, with the euro at $1.09 and the yen at 116.81 yen against the greenback, as of 8:37 a.m. ET.

The Shanghai composite fell 3.51 percent and entered bear market territory, while Brent and WTI futures both held below $30 a barrel, down about 5 percent each. The pan-European STOXX 600 index fell nearly 2 percent. 

The blue chips index was also dragged down by falls in Intel (INTC), Apple (AAPL) and Goldman Sachs (GS). Intel reported better-than-expected earnings Thursday, but the stock is down about 6 percent in the premarket on Friday.

Traders also looked to a speech from New York Federal Reserve President William Dudley as well as a host of important data. 

Dudley is scheduled to speak at the Economic Leadership Forum in Somerset, New Jersey, at 9 a.m. ET.

Traders expect Dudley to sound dovish on U.S. monetary policy and there's anticipation that he will discuss whether he sees recent market developments as factors that could give the Fed pause.

Central bank officials have forecast four Fed rate hikes this year, but economists expect about two. The first is expected in March. 

Industrial production and capacity utilization are scheduled to be released at 9:15 a.m., while consumer sentiment and business inventories are set to come out at 10:00 a.m.

 

— CNBC's Patti Domm contributed to this report