Stock market news: Opening bell, December 6, 2018

A
Mandarin duck flutters in Central Park in New
York.
AP/Seth
Wenig

Here is what you need to know. 

1. 
   Canada arrested Huawei’s CFO, and the US is seeking to
   extradite her.  Meng Wanzhou, CFO of the
   Chinese technology company Huawei, was arrested on suspicion of
   violating the US’s trade sanctions on Iran, adding a new
   chapter to the US-China trade war.
2. 
   Stocks are getting rocked.
   Hong Kong’s Hang Seng (-2.47%) led the losses
   in Asia and Britain’s FTSE (-2.6%) trails in Europe. The
   S&P 500 is set to open down 1.66% near 2,655.
3. Bonds are rallying.
   Buying has pushed the 10-year
   yield down more than 2 basis points to 2.89%, but the yield
   curve is slightly steeper with the 2-10-yr spread up to 13
   basis points.
4. 
   Oil craters after Saudi Arabia proposes a smaller than expected
   production cut. 
   West Texas Intermediate crude oil was down
   more than 3% at $51.25 a barrel after Saudi energy minister
   Khalid Al-Falih said cutting production by about 1 million
   barrels a day should be “adequate,” Bloomberg reports. OPEC has
   been considering cuts of up to 1.5 million bpd.
5. 
   There’s a ‘deus ex machina’ that could save the markets from
   disaster.
   The strong
   US dollar needs to weaken in order to save the stock market,
   and there are four ways that can happen, according to Vincent
   Deluard, macro strategist at FCStone.
6. 
   There are more details in Tesla’s bid for a Gigafactory in
   China.
   The
   state-owned Shanghai Construction Group is doing the bidding,
   and at least one contractor has started buying materials for
   the plant’s foundations, Reuters reports, citing sources and
   documents it reviewed.
7. 
   Clues suggest China was behind the huge Marriott
   hack. 
   Tools,
   techniques, and procedures that have previously been used in
   attacks by Chinese hackers were discovered by investigators
   looking into the breach of up to 500 million customers in
   Marriott’s Starwood reservation system, Reuters reports, citing
   three people familiar with the matter.
8. 
   There’s a simple reason people aren’t buying iPhones like they
   used to.
   Apple
   “continues to try to push toward these higher-price devices,
   and we think that is continuing to cause a slowdown in the
   replacement cycle,” Angelo Zino, senior equity analyst at CFRA,
   told Business Insider, adding he doesn’t see that as a broader
   warning for the state of the US consumer.
9. Earnings
   report picks up a bit.
   Kroger reports ahead of the opening bell
   while American Outdoor Brands, Broadcom, Lululemon, and Ulta
   Beauty are set to release their quarterly results after markets
   close.
10. 
    US economic data is heavy.
    ADP Employment Change will cross the wires at
    8:15 a.m. ET and initial claims is released at 8:30 a.m. ET.
    Then at 9:45 a.m. ET, Markit services PMI will be released
    before data concludes at 10 a.m. ET with ISM non-manufacturing,
    factory orders, and durable goods orders.