Hillary Clinton to propose drug industry cut their prices Fiat, Ford, GM follow global auto stocks lower on VW scandal Share on Facebook Share on Twitter U.S. stock-index futures fell, with raw-material shares dragged lower as commodities retreated, a selloff in biotechnology shares deepened and Volkswagen AG’s diesel-emissions cheating scandal continued to rattle global auto stocks. Fiat Chrysler Automobiles NV fell 5.6 percent, while Ford Motor Co. and General Motors Co. lost at least 2 percent. Celgene Corp., Gilead Sciences Inc. and Biogen Inc. declined before presidential hopeful Hillary Clinton today proposes to force the pharmaceutical industry to give up tax breaks and lower their prices. Freeport-McMoRan Inc. dropped 4.7 percent along with mining stocks globally as sliding commodity prices sparked a selloff in higher-yielding assets. Contracts on the Standard & Poor’s 500 Index expiring in December lost 1.7 percent to 1,929.75 at 9:03 a.m. in New York. Dow Jones Industrial Average contracts retreated 271 points, or 1.7 percent, to 16,185. Nasdaq 100 Index futures sank 2 percent. “People may think that the Fed knows things that the people don’t know, but this is really lack of visibility right now,� said Christian Gattiker, head of research at Julius Baer Group in Zurich. “The whole situation is rather fragile -- at least that’s the perception. In hindsight, it would have been a better sign from them to hike rates and calm the markets saying, ‘That was it.’ People are trying to make sense of it, and we’re zig-zagging.� Equities got a boost Monday after a quartet of Fed officials talked up prospects for higher rates in 2015, just days after the central bank jolted investors by citing global market turmoil and a slowdown in China as reasons for standing pat. Their remarks suggested continued improvement in the domestic economy may overshadow concerns about global conditions. The central bank’s bid for greater transparency about its criteria for a rate increase has left markets twitching with every economic report amid an expanding Fed checklist and conflicting U.S. data. Fed Chair Yellen said last week that policy makers would scrutinize slowing growth in China and emerging markets for risks that could spill over to the U.S. Liftoff Uncertainty Meanwhile, the market remains unconvinced a liftoff will take place this year after the Fed’s decision and its dovish statement. Traders are pricing in a 46 percent probability of a rate increase by the Federal Open Market Committee’s December meeting, compared with 64 percent on Sept. 16 before the policy decision. Equities have been particularly volatile amid concerns about the impact of China’s slowdown and the Fed’s intentions. The Chicago Board Options Exchange Volatility Index has closed above 20 for 21 straight sessions, the longest stretch since June 2012. The measure of market turbulence known as the VIX fell 9.6 percent Monday to 20.14, and is down 29 percent this month. Technology stocks were among other equities declining Tuesday, with Apple Inc., Microsoft Corp. and Facebook Inc. down at least 1.2 percent. Intel Corp. and Skyworks Solutions Inc. lost 2.1 percent. “Technology companies are the heavyweights, and this is translating into the heavyweights,� Julius Baer’s Gattiker said. “It’s also the area that has been among the best performers so far, so on days like this they take a hit.� Weatherford International Plc soared 11 percent after the oil-services company scrapped a proposed $1 billion sale of shares and convertible debt. The sale was announced yesterday, and Weatherford’s share price tumbled 17 percent in response. Ashland Inc. gained 4 percent after the producer of specialty chemicals said it will split its Valvoline motor-oil unit into a separate company. Valvoline accounts for about 50 percent of Ashland’s operating income and 35 percent of its revenue.

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