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Investing.com - Here are the top five things you need to know in financial markets on Tuesday, January 22:
1. U.S. Futures Point to Shaky Open
U.S. stock futures pointed to a sharply lower open at the start of the trading week, as worries about a global economic slowdown weighed on sentiment.
At 5:20AM ET (10:20 GMT), the blue-chip Dow futures were down 137 points, or about 0.55%, the S&P 500 futures slumped 16 points, or around 0.6%, while the tech-heavy Nasdaq 100 futures indicated a drop of 55 points, or roughly 0.8%.
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Wall Street was closed on Monday due to the Martin Luther King Jr. Day holiday.
Elsewhere, European stocks were lower, with most major bourses across the region in negative territory, as investors continued to monitor the latest developments surrounding Brexit.
Earlier, markets in Asia closed mostly in negative territory, with bourses in China leading losses.
2. Fourth-Quarter Earnings Season Kicks into High Gear
There are about 60 S&P 500 companies reporting earnings in the week ahead, including seven Dow stocks, in what will be the second big week of the fourth-quarter earnings season.
Tuesday sees Johnson & Johnson (NYSE:JNJ), Halliburton (NYSE:HAL), Travelers (NYSE:TRV), Stanley Black & Decker (NYSE:SWK), and Steel Dynamics (NASDAQ:STLD) post results in the morning.
IBM (NYSE:IBM) is due in after the close along with TD Ameritrade (NASDAQ:AMTD), and Capital One (NYSE:COF).
Read more: IBM Q4 Earnings In Focus As Doubts About Its Turnaround Strategy Linger: Haris Anwar
3. Oil Prices Slump
In commodities, oil prices fell more than 1% as pessimism about world growth stoked concerns over future crude demand.
U.S. West Texas Intermediate crude futures were down 70 cents, or about 1.3%, at $53.34 a barrel.
International Brent crude oil futures were at $61.87 per barrel, down 87 cents, or around 1.4%.
Weekly data on U.S. crude supplies from the American Petroleum Institute will be delayed to Wednesday, one day later than usual, due to Monday's holiday.
4. Existing Home Sales Data
On the data front, economic reports will be limited due to the government shutdown. Regularly scheduled durable goods will not be available, but there will be existing home sales data due at 10:00AM ET (15:00 GMT).
Existing home sales are expected to have fallen 1.2% last month to 5.25 million units, according to estimates.
Recent data has painted a worrying picture of the U.S. housing market, which is struggling with rising mortgage rates and tight inventory.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was little changed near a three-week high of 96.00.