China cuts taxes; Target reports; Ghosn granted bail

1. China slowdown: The Chinese government announced it is slashing business taxes in order to prevent the economy from slowing down too sharply. China is now forecasting growth of between 6% and 6.5% in 2019. That would represent a decline from last year's 6.6% rate of expansion, which was already the country's weakest annual growth in three decades.

Where U.S. stocks are heading Dow Futures   Nasdaq Futures   S&P Futures +31.00   +8.50   +3.50 +0.12%   +0.12%   +0.13%

World Markets Japan   China   U.K. Nikkei 225   Shanghai Composite   FTSE 100 -95.76   +26.67   +22.95 21,726.28   3,054.25   7,157.34 -0.44%   +0.88%   +0.32%

Biggest Winners Kellogg Co +1.81%   International Flavors & Fragrances Inc +0.73%   Xilinx Inc +0.63%   Nike Inc +0.61% Biggest Losers Alaska Air Group Inc -2.94%   Salesforce.com Inc -2.05%   Micron Technology Inc -1.63%   TechnipFMC PLC -0.71%

News: What you need to know about the markets     China cuts taxes; Target reports; Ghosn granted bail By Ivana Kottasová, CNN Business   1. China slowdown: The Chinese government announced it is slashing business taxes in order to prevent the economy from slowing down too sharply.   China is now forecasting growth of between 6% and 6.5% in 2019. That would represent a decline from last year's 6.6% rate of expansion, which was already the country's weakest annual growth in three decades.   "There has been a more complex and severe environment facing our country's development this year," Chinese Premier Li Keqiang said in a speech.   However, even the lower forecast left some economists skeptical. "Growth of 6% or above remains faster than what we think is achievable in practice," Julian Evans-Pritchard and Chang Liu, economists at Capital Economics, wrote in a note.   The tax cuts and other stimulus measures could save businesses almost $300 billion a year and the announcement gave an immediate boost to Chinese stocks. The Shanghai Composite climbed almost 0.9%, while the Shenzhen Composite jumped 2.3%.   2. Retail earnings: Target is set to release earnings before the opening bell on Tuesday. The company has recently become a formidable competitor to Amazon and Walmart because of its lineup of trendy private-label clothing, and its sharp focus on trying to win over moms and dads.   The company has also been expanding its free loyalty program that helps it gather key information about customers' shopping habits.   Other retailers are also reporting on Tuesday. Barnes & Noble Education and Kohl's will publish their results before the open, while Ross Stores and Urban Outfitters will follow after the close.   3. Bail for Ghosn: Carlos Ghosn, the former chief of Nissan and Renault, was granted bail on Tuesday, after spending three months in a Japanese jail cell.   The Tokyo District Court said that Ghosn could be released on bail of 1 billion yen ($9 million) with the conditions that he remain in Japan and be prevented from seeking to destroy evidence. Prosecutors have appealed the decision, making it uncertain when he might be freed.   The auto executive is awaiting trial on charges he understated his income and abused his position by temporarily transferring personal investment losses to the Japanese carmaker. Ghosn denies all the charges. If found guilty, he could face as many as 15 years in prison.   4. Global market overview: US stock futures were pointing higher on Tuesday.   European markets opened mostly up, while stocks in Asia ended the session mixed.   The Dow Jones industrial average declined 0.8% on Monday. The S&P 500 closed 0.4% lower, and the Nasdaq shed 0.2%.   China's lower official economic forecast put pressure on oil prices, as investors worried demand from China could slow down. US crude futures fell 0.8% to $56 per barrel, while Brent crude, the international benchmark, dropped 0.7% to $65 per barrel.   Before the Bell newsletter: Key market news. In your inbox. Subscribe now!   5. Companies and economics: The Geneva Motor Show continues on Tuesday with more brands unveiling new electric cars. Audi launched the Q4 e-tron compact electric SUV. The model is expected to enter full production by the end of 2020.   Huawei is reportedly planning to escalate its push back against the US government this week. The Chinese tech company intends to file a lawsuit against the American government over a law that bans US federal agencies from buying Huawei products, according to reports by The New York Times and the Financial Times citing unidentified sources. Huawei declined to comment on the matter.   The Census Bureau plans to release its New Home Sales report for December at 10 a.m. ET. The Institute for Supply Management will publish its non-manufacturing index at the same time.   Mark Carney, the governor of the Bank of England, will testify before the House of Lords just after 10:30 a.m. ET.

Coming this week:     Tuesday — Target, Kohl's and Ross Stores earnings, US ISM non-manufacturing index Wednesday — Dollar Tree and Abercrombie & Fitch earnings, Fed Beige Book Thursday — Kroger, H&R Block, Costco earnings Friday — US jobs report

Key Market Stats Latest Today's Change Oil $56.50 -0.09 / -0.16% Gold $1,285.90 -1.60 / -0.12% 10-yr 2.72% -0.03 Euro $1.13 -0.00 / -0.06%

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