Dow Retreats as Japan Gets Slapped With a Downgrade

The Dow Jones Industrial Average (INDEXDJX:DJI) is poised to retreat from record-high territory, with futures pointed decidedly lower ahead of the bell. Stoking the bearish flames is Moody's downgrade of Japan's credit rating -- which occurred just after the Nikkei closed at a seven-year high -- as well as a continued sell-off in oil futures. Meanwhile, gold is also headed south, after voters in Switzerland rebuffed a proposal to raise the country's gold reserves. Against this backdrop, the DJI is bracing for a 42-point plunge right out of the gate.

• Amid the biggest shopping day of the year, e-commerce concerns Amazon.com, Inc. (NASDAQ:AMZN) and Alibaba Group Holding Ltd (NYSE:BABA) captured headlines.
• Black Friday may have been a short session, but these 3 stocks were making serious moves on the charts.
• How this week could have serious implications for the rest of December, as noted by Schaeffer's Senior Quantitative Analyst Rocky White.

Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are 42 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 810,374 call contracts traded in Friday's holiday-shortened session, compared to 526,359 put contracts. The resultant single-session equity put/call ratio edged up to 0.65, while the 21-day moving average remained at 0.59.

Currencies and Commodities

• The U.S. dollar index is down 0.3% at 88.12.
• Crude oil is poised to extend last week's losses, and is 0.4% lower at $65.89 per barrel.
• Gold, meanwhile, has shed 0.2% to hover at $1,173.40 per ounce.

Earnings and Economic Data

Starting off the week will be the Institute for Supply Management's (ISM) manufacturing index and Markit's flash purchasing managers manufacturing index (PMI). Mattress Firm (MFRM) and Shoe Carnival (SCVL) will present earnings.

Overseas Trading

Asian equities finished mostly lower today, amid falling oil prices and a pair of reports that showed declining factory activity in China. By the close, Hong Kong's Hang Seng was down 2.6%, despite a rally in financials, while South Korea's Kospi shed 0.8%, and the Shanghai Composite lost 0.1%. Japan's Nikkei managed to buck the regional bearish bias, jumping 0.8% to a seven-year high on a cooling yen and a strong reading on corporate spending.

European bourses are being pressured into the red as a drop in commodities sparks a sell-off among mining and energy names. Additionally, traders are digesting a round of disappointing eurozone -- and regional -- manufacturing data. At last check, London's FTSE 100 is off 0.9%, while the French CAC 40 and the German DAX are each flirting with 0.4% losses.

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