Stocks point lower as oil surges on Saudi facility attack
U.S. stock futures are indicating a lower start to the week on Wall Street after crude prices surged following an attack on Saudi Arabia's biggest oil processing facility.
Dow Industrial futures are down 0.3 percent or jaround 90 points. Dow futures were down as much as 204 points at 8:30pm ET on Sunday night.
S&P 500 futures are off 0.4 percent and Nasdaq futures dropped 0.7 percent.
The benchmark U.S. crude price jumped more than $5 per barrel following the attack on oil producer Saudi Aramco's Abqaiq facility, for which Yemeni rebels claimed responsibility. Brent crude, the international standard, was up $6 after spiking nearly $8 at one point.
Smoke fills the sky at the Abqaiq oil processing facility on Saturday, Sept. 14, 2019 in Saudi Arabia. Drones claimed by Yemen's Houthi rebels attacked the world's largest oil processing facility in Saudi Arabia and a major oilfield operated by Saudi
The jump in crude prices hurt airline stocks and other businesses with big fuel bills and put upward pressure on inflation expectations. At the same time, higher prices are a boost to oil exporters such as Malaysia and temporarily pushed up share prices for crude producers.
The United Auto Workers went on a nationwide strike against General Motors on Sunday night after contract talks broke off Sunday. It is the first strike against GM in 12 years. Talks will resume Monday morning. The strike affects nearly 50,000 workers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 55.49 | +0.70 | +1.29% |
industrial production in China grew at its weakest pace in 17-1/2 years amid rising U.S. trade pressure and softening domestic demand.
In Asian markets, Hong Kong's Hang Seng ended the day down 0.8 percent while China's Shanghai closed little changed. Japanese markets were closed for a holiday.
The Hang Seng index declined following more weekend anti-government protests.
President Donald Trump postponed planned Oct. 1 tariff hikes to Oct. 15, opening up the possibility they might be put off indefinitely if the talks make progress. Beijing announced Friday it would lift punitive duties on soybeans, China's biggest import from the United States, and some other farm goods.
Despite that, the two sides have given no indication of progress toward resolving the core issues in the sprawling dispute over trade and technology that threatens to chill global economic growth.
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In Europe, London's FTSE slipped 0.4 percent, Germany DAX was down 0.6 percent and France's CAC dropped 0.8 percent.
On Wall Street, the Standard & Poor's 500 index turned in its three straight weekly gain Friday, even as major U.S. indexes ended the day mostly lower.
The Associated Press contributed to this article.