MARKET SNAPSHOT: U.S. Stocks: Futures Tip South On EU Growth Cuts; Oil Plunges

By Barbara Kollmeyer, MarketWatch

MADRID (MarketWatch) -- U.S. stock futures were pointing to a lower start for Wall Street after the European Commission slashed its growth forecasts for Europe and as oil prices continued to sink after Saudi Arabia cut prices for the U.S. market.

Futures for the Dow Jones Industrial Average (DJZ4) fell 38 points, or 0.3%, to 17,247, while those for the S&P 500 index (SPZ4) dropped 5.7 points to 2,005.40. Futures for the Nasdaq-100 index (NDZ4) fell 9.25 points to 4,148.

Stock futures reversed course after the EU cut its forecast for gross domestic product for the 18-country eurozone region to 0.8% this year, from a 1.2% forecast in the spring. Lower-than-expected growth in Germany, France and Italy dragged down those forecasts. The assessment comes ahead of Thursday's European Central Bank meeting.

Weak oil, weak Europe: Already weak oil prices didn't take kindly to the EU growth assessment. The U.S. oil benchmark continued to slide Tuesday, dropping over 2%, and Brent crude also was under renewed pressure after Saudi Arabia deepened price cuts for the U.S. market. Strategists said the move will pave the way for further falls in oil prices and pressure American energy producers.

U.S. stocks ended a choppy session mostly lower on Monday, with energy stocks weighing on major indexes after the Saudi move.

Analysts don't expect Wall Street to find much direction ahead of Thursday's ECB meeting and Friday's nonfarm payroll data. "We do expect the market to consolidate till then and the volatility could pick up sharply during the event," said Naeem Aslam, chief market analyst at AvaTrade, in emailed comments.

U.S. voters will head to the polls on Tuesday to decide closely contested Senate races and control of that chambler. See: A breakdown of how the market performs after midterm elections

Data on tap includes the September trade deficit at 8:30 a.m. Eastern Time and factory orders for the same month at 10 a.m. Eastern. St. Louis Federal Reserve President James Bullard will appear on a Fox Business Network interview at 9 a.m. Eastern.

Alibaba, Herbalife among stocks to watch: Ahead of the opening bell, Alibaba Group Holding Ltd. (BABA), CVS Health Corp. (CVS), Burger King Worldwide Inc. (BKW) and Archer Daniels Midland Co. (ADM). What to watch for in Alibaba's earnings

Shares of Herbalife Ltd. (HLF) could add to a 14% fall late Monday after the company reported disappointing third-quarter results.

RetailMeNot Inc. (SALE) sank 20% in late Monday trade after posting strong results, but warning that much of its growth has been from "lower monetizing mobile visits."

Sprint Corp. (S) fell 5% in late trade after results fell short of Wall Street expectations.

Apple Inc. (AAPL) and Google Inc. (GOOG) reached a deal with Walt Disney Co. (DIS) in which the two tech giants will allow consumers who buy a Disney movie from either of their online stores to watch it on smartphones, tablets and other digital devices that run their rival's operating system.

Other markets: Europe stocks erased gains after news of the cut in eurozone growth forecasts, while in Asia, the Nikkei 225 surged 2.7%. Gold prices (GCZ4) were moderately lower, while the dollar(USDJPY) was taking a breather from rapid gains against the yen.

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