Here are five things you must know for Monday, Sept. 16:
1. -- Stock Futures Tumble After Attacks on Saudi Oil Facilities
U.S. stock futures tumbled Monday and global stocks fell after oil prices surged the most in more than two decades following an attack on two key Saudi Arabian oil facilities and industrial output data from China was the weakest since 2002.
Oil prices surged the most since the 1991 Gulf War in early trading, before paring gains to between $5 and $6 a barrel, after drone attacks on the Abqaiq and Khurais crude facilities in Saudia Arabia, which caused massive fires and shuttered nearly 5% of global production.
Some U.S. officials blamed Iran for the attacks, with Donald Trump saying he was "locked and loaded" for a response "depending on verification." Iran, which also has been implicated in drone attacks on various oil tankers in the Strait of Hormuz, denied involvement.
Meanwhile, industrial data from China showed output slowing to a 17.5-year low in August, weakening to 4.4% in August, as the trade was with the U.S. escalated. Readings on both retail sales and fixed asset investment growth also worsened.
Contracts tied to the Dow Jones Industrial Average declined 103 points, futures for the S&P 500 slumped 111.85 points, and Nasdaq futures were down 51.75 points.
Stocks ended mixed on Friday but the Dow rose for the eighth-straight session on trade progress between the U.S. and China.
The economic calendar in the U.S. Monday includes the Empire State Manufacturing Survey for September at 8:30 a.m. ET.
The earnings calendar is light Monday but reports are expected later in the week from Adobe (ADBE - Get Report) , FedEx (FDX - Get Report) , General Mills (GIS - Get Report) , Chewy (CHWY) and Darden Restaurants (DRI - Get Report) .
2. -- Oil Prices Spike as 5% of World's Supply Knocked Out
Oil prices spiked Monday as Saudi Arabia worked to repair damage from drone attacks on critical oil facilities.
Futures for Brent crude, the European benchmark, jumped 10.56% to $66.58 a barrel, while West Texas Intermediate crude futures, which are more tightly linked to U.S. gas prices, rose 9.81% to $60.23.
Saudi Arabia estimated the disruption, which has shut nearly all of the kingdom's daily production of 5.7 million barrels - and 5% of the world's - could take weeks to correct, but said it could tap its 188 million barrels in reserves to keep global markets stable.
Donald Trump said he would authorize the release of oil from the Strategic Petroleum Reserve and allow for the expedited "approval" of oil pipelines in Texas and various other states following the drone strikes on Saudi Arabian oil facilities that increased fears of lowered production and increased crude prices.
"Based on the attack on Saudi Arabia, which may have an impact on oil prices, I have authorized the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount sufficient to keep the markets well-supplied," wrote the president on Twitter Sunday evening. "I have also informed all appropriate agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other States."
"The market has suddenly shifted from being oversupplied to undersupplied, and even if we combine all the spare global capacity available, that won't make up half the current disruption," said FXTM market analyst Han Tan. "However, Saudi Arabia has a significant volume of oil in storage that will keep exports flowing and the US has stated it may even tap into its Strategic Petroleum Reserve if needed.
"This would soften the damage to some extent, but again it's all about when production returns back to normal," he added. "The longer the disruption goes on, the more damage will be felt."
3. -- General Motors Slumps as UAW Goes on Strike
General Motors (GM - Get Report) fell 2.99% to $37.70 in premarket trading Monday after the United Auto Workers union rejected a proposal from the automaker worth more than $7 billion and tens of thousands of its members went on strike at 11:59 p.m. ET on Sunday, the first such major industry walkout in nearly 12 years.
The strike came 24 hours after negotiations failed by midnight Saturday to produce a new contract.
"Local Union leaders from across the nation met Sunday morning after the 2015 General Motors collective bargaining agreement expired Saturday night and opted to strike at midnight on Sunday," said the UAW in a press statement earlier on Sunday.
"We stood up for General Motors when they needed us most. Now we are standing together in unity and solidarity for our members, their families and the communities where we work and live," Terry Dittes, UAW vice president, said in a statement.
General Motors, the biggest U.S. automaker, said it made a "strong offer" to union workers that would increase wages, benefits and create more U.S. jobs. It characterized the offer as an investment of more than $7 billion that included more than 5,400 jobs, higher pay, and improved benefits.
GM called the union's rejection of its offer and planned strike "disappointing."
The automaker put forth a detailed explanation of its proposed offerings that include what GM called "best-in-class wages and benefits" such as wage increases, an "improved" profit sharing formula, ratification payment of $8,000, and new health coverage for autism therapy care, chiropractic care and allergy testing.
It also promised investments in eight facilities in four states, the opportunity to become the first union-represented battery cell manufacturing site in the U.S. and additional new vehicle and propulsion programs.
Talks are scheduled to resume Monday morning.
4. -- OxyContin Maker Purdue Pharma Files for Bankruptcy
Purdue Pharma, the maker of the opioid OxyContin, filed for bankruptcy in White Plains, New York, days after reaching a tentative settlement with many of the state and local governments that sued the company for its part in the opioid crisis.
The bankruptcy filing was expected. The settlement has been estimated at between $10 billion to $12 billion.
"This settlement framework avoids wasting hundreds of millions of dollars and years on protracted litigation," Steve Miller, chairman of Purdue's board, said in a statement, "and instead will provide billions of dollars and critical resources to communities across the country trying to cope with the opioid crisis. We will continue to work with state attorneys general and other plaintiff representatives to finalize and implement this agreement as quickly as possible."
But legal battles still lie ahead for Purdue, which is spending millions on legal costs as it defends itself in lawsuits from 2,600 government and other entities, according to the Associated Press. About half the states haven't signed onto the proposal, and several of them plan to object to the settlement in bankruptcy court and to continue litigation in other courts against members of the Sackler family, which owns the company.
5. -- Walt Disney CEO Iger Resigns From Apple's Board
Iger had served on the board since 2011.
"While we will greatly miss his contributions as a board member, we respect his decision and we have every expectation that our relationship with both Bob and Disney will continue far into the future," Apple said in a statement.
His departure comes as Apple prepares to go head-to-head with Disney in streaming video.
Apple's Apple TV+ service is set to launch on Nov. 1. Disney's streaming video service, Disney+, is set to launch on Nov. 12.