Stocks Look to Suffer Under China's Bear Claws, Sub-$30 Oil, Mixed Earnings

Stocks stumbled in early Friday action, pummeled by a fresh move lower for global oil prices, which are now below the psychologically significant $30-per-barrel mark.

Adding to the downbeat mood: China’s latest stock move tips its markets into bear territory and the reach of its claws is wide. European stocks were also sharply lower. Even the dollar fell, as global forex participants scrambled into the relative short-term “safety” of the Japanese yen. Gold prices climbed nearly 2% in early action. And the benchmark 10-year Treasury yield hit 2.005%—a three-month low for it at a time when the Federal Reserve is looking to reverse the ultra-low U.S. interest rate climate.

Traders also have to sift through an intensifying earnings line-up, which this morning included a mixed bag of news from a banking sector struggling with oil-linked loans, trading volatility, and low interest rates. Also hitting financial markets this morning: weaker U.S. retail sales figures (more on those below).

Tough Time for Intel. In a late-Thursday report, chipmaker Intel Corporation INTC said its earnings fell 1% versus a year-earlier comparable as diversification away from personal computers hasn’t gone far enough, industry analysts say. Industry data out this week, including from consulting firm Gartner, showed continued weakness in the personal computer market, especially due to China’s slowing economy. INTC’s earnings report had some brighter spots. For 2016, the company predicted revenue would rise by a percentage in the mid-to-high single digits, up from its previous estimate that predicted revenue would grow by a percentage in the mid-single digits. INTC shares are lower in early Friday trading. The stock is down roughly 10% over the past year.

Where’s That Consumer? While auto and housing numbers have been generally bullish, there’s still slack in broad consumer spending, according to recent data. December’s 0.1% drop in retail sales matched the median forecast of 84 economists surveyed by Bloomberg and followed a 0.4% gain in November. But the yearly statistics are a little sobering. For all of 2015, purchases climbed 2.1%, the smallest advance of the current economic expansion, Bloomberg says. Sales were up 3.9% annually in 2014. Receipts at gas stations fell 1.1% in December to account for some of the total decline. But cheaper pump prices are not translating into other spending. What’s going on?