Stock futures tanked on the first trading session of the year after global markets slumped on weak Chinese manufacturing data and geopolitical tensions between Saudi Arabia and Iran. 

S&P 500 futures fell 1.8% on Monday, Dow Jones Industrial Average futures slid 1.7%, and Nasdaq futures tumbled 2%. 

China's Shanghai Composite plummeted 7% before triggering a trading halt after manufacturing activity contracted for the 10th straight month. The official manufacturing PMI came in at 49.7, while Caixin manufacturing PMI fell to 48.2. A reading below 50 indicates contraction. China's economic growth came under scrutiny in 2015 as data indicated a steeper slowdown than feared. 

Global markets were also lower after Saudi Arabia severed diplomatic relations with Iran on Sunday. Protesters torched a Saudi Arabian Embassy in Tehran on Saturday in response to Saudi Arabia's execution of 47 prisoners, including Shiite cleric Nimr Baqr al-Nimr. 

Tensions pushed the price of crude oil higher on potential supply disruptions between the two. West Texas Intermediate crude oil added 0.5% to $37.23 a barrel. Crude recently closed out the year down more than 30%. 

Shire (SHPG) is in advanced talks to acquire Baxalta (BXLT) for around $32 billion in cash and stock, or around $46.50 to $48 a share, sources told Bloomberg. A deal could be announced as soon as this week after final details are negotiated. A combined company would generate $20 billion in sales by 2020.

Nokia (NOK) climbed more than 2% in premarket trading after officially gaining control of Alcatel-Lucent (ALU) through an all-share deal. Nokia will hold 79% of Alcatel shares and expects to become a fully-functional combined group by the middle of the month. 

American Express (AXP) and Bank of America (BAC) were under pressure after Fidelity Investments dropped the two as credit card partners after 12 years. Visa (V)  and U.S. Bancorp (USB)  will take over as the network and issuer of the Fidelity card.

Tesla (TSLA) shares tumbled more than 4% in premarket trading on Monday after the automaker said it delivered 17,400 cars in the fourth quarter, up from 11,603 in the previous quarter. The company said it delivered 50,580 Model S sedans and Model X sport utility vehicles in 2015, falling at the low end of previous guidance.  

Disney's (DIS) Star Wars: The Force Awakens is set to become the highest-grossing film of all time in North American theaters this week. Avatar had previously held the title. The domestic gross for the film currently stands at $740.3 million, while globally it has generated $1.5 billion.

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