U.S. futures indicate a sharply lower start to 2019, as a contraction in Chinese manufacturing adds to concerns over slowing global growth. The S&P 500 futures trade 43 points, or 1.7%, below fair value.
Specifically, China's Caixin Manufacturing PMI fell to 49.7 in December, showing a contraction for the first time since May 2017. The lower-than-expected reading has weighed on global markets with China's Shanghai Composite losing 1.2% and the STOXX Europe 600 trading lower by 0.8%.
Falling oil prices ($44.69/bbl, -$0.72, -1.6%), in turn, have reflected these growth concerns.
In U.S. corporate news, Tesla (TSLA 311.00, -21.80) is down 6.7% in pre-market trading after it missed Wall Street estimates with 90,700 vehicle deliveries in the fourth quarter. Deliveries still rose 8.0% from the third quarter, however. Netflix (NFLX 258.69, -8.97), for its part, is down 3.4% after SunTrust lowered its price target to $355 from $410 due to weak Q4 subscriber adds.
U.S. Treasuries remain higher amid the projected lower start in stocks, pushing the benchmark 10-yr yield down four basis points to 2.65%. The U.S. Dollar Index is up 0.6% to 96.70.
Investors will not receive any notable economic data today.