Wall Street's Sell-off Far From Over

(RTTNews) - Early indications suggest that Wall Street stocks may open Monday's session on a down note, although the degree of negativity has toned down after last Friday's massive sell-off. More Fed speeches are on the anvil, with Fed Governor Lael Brainard being the most focused on event, as it pertains to the monetary policy per se and is being talked off as the last major Fed speech ahead of next week's Fed decision. The dollar is firmer, courtesy its safe haven appeal, and commodities are lower. Global markets are also on sell-off mode.

As of 6:15 am ET, the Dow futures are slipping 117 points, the S&P 500 futures are down 13.75 points and the Nasdaq 100 futures are receding 38.50 points.

U.S. stocks retreated in the abbreviated week ended September 9th, with the major averages sliding to 2-month lows, as Fed rhetoric about the strength of the economy and the pitfalls of extended period of monetary policy accommodation pounded stocks.

The unfolding week's economic calendar is back-end loaded, with several market moving economic reports lined up for release on Thursday and Friday.

The Commerce Department's retail sales report for August due on Thursday, the results of the New York Federal Reserve's and Philadelphia Federal Reserve's manufacturing surveys for September, both due on Thursday, the Federal Reserve's industrial production report for August, also due on Thursday, the routinely scheduled jobless claims data, the Labor Department's consumer prices data for August and the University of Michigan's preliminary consumer sentiment index for September are among the market moving reports of the week.

Given the worries over interest rate hike, Fed speeches scheduled for Monday could also be in the spotlight. The Labor Department's data on export and import prices and producer prices for final demand, both for August, the Commerce Department's business inventories report for July, the Treasury Department's monthly budgetary report for August and the results of the auctions of 3-year and 10-year notes and 30-year bonds round up the economic events of the week.

Atlanta Federal Reserve Bank President Dennis Lockhart is scheduled to speak to a NABE conference in Atlanta at 8 am ET. At 1 am ET, Minneapolis Federal Reserve President Neel Kashkari will speak at St. Paul BOMA's Thought Leader Seminar and St. Paul Port Authority's Expert's Forum with audience Q&A in Saint Paul, Minnesota. The speech is due at 1 pm ET. Also at 1 pm ET, Brainard is set to discuss the U.S. economic outlook and monetary policy implications at The Chicago Council on Global Affairs in Chicago.

The Treasury will release the results of the Treasury auctions of 3-year and 10-year notes at 1 pm ET.

In major corporate news, reacting to SEC's enforcement action relating to its previously issued restatement of results for the first, second and third quarters of 2013, RPM International (RPM) said it believes there was no intentional misconduct on the part of any of its officers and that it would defend itself.

SkyWest (SKYW) said its load factor for August fell 1 percentage point year-over-year to 82.7 percent, as capacity and traffic were down 6.5 percent and 7.7 percent, respectively. United Airlines' (UAL) August load factor declined 1.1 points, with traffic rising 0.6 percent and capacity increasing 1.9 percent.

The Asian markets sold off, as panic following last Friday's plunge by U.S. stocks drove traders away from equities.

The strengthening of the safe haven yen and the general risk off mood sent Japanese stocks lower. The Nikkei 225 average opened notably lower and moved roughly sideways before ending down 292.84 points or 1.73 percent at a 2-week low of 16,673. Australia's All Ordinaries opened lower and fell steeply in early trading before moving sideways. At the close of trading, the index was down 121.40 points or 2.23 percent at a 2-month low of 5,319.

Hong Kong's Hang Seng Index closed at 23,291, down 809.10 points or 3.36 percent, and China's Shanghai Composite lost 56.88 points or 1.85 percent before ending at 3,022.

On the economic front, a report released by Japan's Cabinet Office showed that core machinery orders rose 4.9 percent month-over-month in July, belying expectations for a 2.9 percent drop. Annually, core machinery orders soared 5.2 percent, ahead of the 0.3 percent increase expected by economists.

The corporate goods prices in Japan fell 0.3 percent month-over-month in August, according to data released by the Bank of Japan. Economists expected a more modest 0.1 percent drop. Annually, corporate goods prices fell 3.6 percent compared to consensus estimate for a 3.4 percent drop.

European stocks are also witnessing a steep pullback, extending their losses from last Friday.

In major corporate news, industrial gas maker Linde and Praxair called off their merger talks. U.K.'s AB Foods raised its earnings guidance for the year, helped by solid second-half trading and favorable currency impact. Frankfurt airport operator Fraport reported a decline in traffic in August.