U.S. futures are down in premarket trading on Tuesday, following a dismal day of trading in Japan.
The Japanese Nikkei closed trading down 5.4% on Tuesday, falling for the fifth time in the last six sessions. Markets in China are closed for the week in recognition of the Lunar New Year, while markets in Hong Kong are closed for the day.
The Japanese 10-year bond yield fell below 0% for the first time ever in the wake of the Bank of Japan's surprise decision to adopt an interest rate below zero in late January. The decision, in effect, charged some banks for excess reserves held at the bank in an effort to encourage lending.
European stocks are also headed lower today with the DAX, FTSE 100, and CAC 40 down 1.2%, 0.7%, and 1.6%, respectively.
Oil prices are climbing for the first time in the last three sessions today with industry benchmark Brent crude for April 16 delivery up $0.18 to $33.06 per barrel, while West Texas crude is also up $0.36 to $30.05 per barrel. Oil prices had been falling after the International Energy Agency released a report saying that the global supply glut that has plagued the commodity for nearly two years will be larger than previously estimated in the first half of 2016.
In U.S. news, the presidential election season moves into its next phase as the New Hampshire primary gets under way today. Also, President Obama is scheduled to submit his final budget proposal to Congress today. Last week, the White House announced that the budget would include a proposal for a $10-per barrel oil tax to be paid by crude producers. Analysts do not anticipate the Republican-controlled Congress passing such a budget.
In U.S. stock news, Twenty-First Century Fox (FOXA) shares are declining in premarket trading on Tuesday after the company reported disappointing fourth-quarter results from its film division. Overall, the company reported an 8.4% decline in revenue for the quarter.
Shares of fellow media company and Trifecta Stocks holding Walt Disney Company (DIS) are also down in premarket trading ahead of the release of the company's first-quarter fiscal 2016 earnings results after the closing bell today. Analysts are expecting the company to report earnings of $1.44 per share vs. the $1.27 it earned in the year-ago period.
Viacom (VIAB) may face negative pressure today after reporting mixed December-quarter data. The company topped analysts' bottom-line expectations, but missed top-line forecasts. Trifecta Stocks holding CVS Health (CVS) matched analyst expectations, with EPS of $1.53 in the fourth quarter.
Finally, Sears (SHLD) will face negative pressure today after the company provided preliminary guidance showing that fourth-quarter comps were down 7.1% while January comps were also down 4.5% year over year.