U.S. stock-index futures dropped, signaling equities will retreat after yesterday’s rally, on renewed concern over the Chinese economy and falling oil prices.
Fitbit Inc. tumbled 17 percent in pre-market New York trading after its revenue and profit forecasts for the current quarter fell short of analysts’ expectations. SolarCity Corp. declined 1.8 percent after JPMorgan Chase & Co. cut its rating to neutral from overweight. Twitter Inc. advanced 1.2 percent after Raymond James and Associates raised its recommendation to outperform, similar to buy, from market perform.
Standard & Poor’s 500 Index contracts expiring in March slid 0.4 percent to 1,929.25 at 9:55 a.m. in London. The equity benchmark rose to a six-week high yesterday as oil rebounded. The index is still down 8.7 percent from a May record and 4.8 percent lower this year on concern that weakness in China will damp global growth, and that lenders will suffer as some energy producers struggle to stay solvent amid low oil prices. Futures on the Dow Jones Industrial Average lost 61 points, or 0.4 percent, to 16,478 today.
A global stock rally is faltering today after the People’s Bank of China lowered its daily reference rate by the most in six weeks, reigniting concerns over the health of the world’s second-biggest economy. This anxiety had eased in the past week, helping the S&P 500 cut its 2016 decline in half in six trading sessions.