(MENAFN- ProactiveInvestors) U.S. stocks reversed course to move sharply lower Tuesday as a renewed slide in oil prices sparked fears about global deflation amid global growth concerns.
As of noon in New York the Dow Jones Industrial Average was down 133 points at 17379 while the Nasdaq fell 21 points to 4613 and the S&P 500 lost 11 points to 2008.
U.S. markets were closed on Monday for the Martin Luther King Jr. Holiday but finished higher on Friday aided by a rally in oil prices and more stable currency markets. Major indexes still marked a fourth straight weekly loss however.
The International Monetary Fund trimmed its global growth forecast for this year and next warning that a boost from lower crude oil prices would offset weaker economic prospects for China Japan and eurozone nations.
European stocks finished broadly higher however ahead of the expected sovereign bond buying plan by the European Central Bank which is anticipated to be announced on Thursday when policy makers meet. The scope of the plan could disappoint investors though.
Earlier US stock futures rose after China released data showing its economy grew 7.4% in 2014 better than expected but still the slowest pace in 24 years. China's Shanghai Composite finished up 1.8% after falling nearly 8% on Monday amid a margin trading crackdown.
On the economic front in the US the National Association of Builders reported that its monthly builder sentiment index for January ticked down by one point to 57 remaining close to the highest level since late 2005.
In corporate activity earnings season ramps up this week. () fell 1.6% after announcing lower-than-expected fourth quarter profit and revenue.
Halliburton () posted higher earnings and revenue in its December quarter but cautioned that this year will be challenging as it moves forward with its plans to acquire rival (). Shares edged up.
() climbed around 5% after reporting better-than-expected fourth quarter adjusted earnings helped by falling fuel prices.
() fell 3.3% despite topping profit expectations as sales fell shy of estimates. () and () are slated to release quarterly numbers after the closing bell.
In other news oilfield services giant () has agreed to buy a 45.65% stake in Russia's Eurasia Drilling for $1.7 billion with an option to buy the remainder three years after the deal closes.
() is buying India-based mobile marketing company ZipDial for an estimated $30 to $40 million.
J.C. Penney () is according to a report in the Wall Street Journal bringing back its hefty print catalog about 5 years after killing it off after discovering that many of its online sales were driven by what customers saw in print.
Clean Harbors (NYSE:CLH) said Tuesday it is spinning out its oil and gas field services business into a standalone public entity following a strategic review. Shares gained over 2%.
Oil futures fell $1.89 to $46.80 a barrel in New York while gold futures climbed $19 to $1296 an ounce.
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