NYSE invokes Rule 48 for open, Dow futures briefly tumble more than 400

Yahoo Finance ^ | 1-1-2015 | CNBC

[Citizen Zed]

U.S. stock index futures pointed to a sharply lower open on Tuesday, with Dow futures briefly falling more than 400 points, following some weaker-than-expected Chinese data.

Two sets of key Chinese data disappointed traders on Tuesday. The official manufacturing purchasing managers' index (PMI) edged down to 49.7 in August from 50 in July, while the final Caixin/Markit manufacturing PMI came in at 47.3 in August, the lowest reading since March 2009.

Even more worrying, China's services sector , which has been one of the lone bright spots in the sputtering economy, also showed signs of cooling, a similar business survey said.

Read More Rocky month, US data in focus

The New York Stock Exchange invoked Rule 48 for the fourth time in two weeks.

The numbers failed to calm ongoing jitters about the world's second-largest economy, which led to the worst month for more than 3 years in August on the S&P 500 (^GSPC), the U.S. benchmark stock index.

Two key U.S. data reports are due out on Tuesday, which should give further indications on the strength of the domestic economy. The August ISM manufacturing index at 10 a.m. ET. and U.S. auto sales, which is expected to show continued strength in the consumer.

As of the market close on Monday, analysts polled by Thomson Reuters expected a read of 52.6 for ISM manufacturing, a tick lower than July's 52.7 print.

Construction spending data will also be released at 10:00 a.m. and will also be in focus for traders ahead of Friday's highly anticipated official jobs report.

Also in focus will be a speech on the economic outlook on the U.S. economy from Boston Fed President Eric Rosengren in New York at 1:10 p.m. ET.

[Citizen Zed]

Any Freepers making money on the VIX lately?

[bray]

Guess renaming that mountain didn’t calm the markets?

Pray America is waking

[RayChuang88]

I think we'll see a pullback to DJIA 12,000, then all those bargain hunters (with US$4.5 trillion in liquid assets on their hands!) jump in.

[Kartographer]

There is plenty of money to be made in the market. ;-)

[blam]

Global Markets Are Melting Down

[Genoa]

Yep, all I do is buy, day in and day out, come what may, and I never sell. I am blissfully unaware of the ups and downs. I laugh at corrections. Ha ha!

[chud]

The bottom line is that as long as interest rates are low, stocks are the best place to be.*
Even if the Fed raises rates, the market will correct for a bit, but the smart money will stay in stocks until the prime rate is above 9%.

*You should have some money in precious metals though, as insurance

[Oldeconomybuyer]

I guess Rules 1 through 47 didn’t work.

[Nep Nep]

Rule 34 is pretty reliable.

[pepsi_junkie]

Rule 34 is pretty reliable.

This is no time for frivolity! The market is going down on us and ... oops, you were right.

[sten]

i guess manipulating gold on the open isn’t enough anymore