Stocks opened lower following weak economic data out of both China and Europe. The overseas data overshadowed U.S. retail sales data that was a bit better than expected in November as well as another sign of trade progress, namely China officially pausing its imposition of increased tariffs on U.S.-made cars and car parts. Adding another headwind is the steep decline in shares of Dow member Johnson & Johnson (JNJ), which is falling after a Reuters report claiming that the company knew about, and tried to hide, the risks of asbestos being found in talc powder.

ECONOMIC EVENTS: In the U.S.:

• Retail sales rose 0.2% overall in November, which was better than the 0.1% growth forecast
• Retail sales excluding autos, gas, and building materials were up 0.6%
• Industrial production climbed 0.6% in November following a 0.2% decline in October and capacity utilization improved to 78.5% from 78.1% previously
• Markit's flash manufacturing PMI fell 1.4 points to 53.9 in December, hitting its lowest level since November 2017
• Markit's preliminary services PMI slid 1.3 points to 53.4
• Business inventories rose 0.6% in October with sales up 0.3%, as expected

In China:

• Retail sales rose 8.1% during November, down from 8.6% growth in the prior month and marking the slowest pace of growth in fifteen years
• Industrial production rose 5.4% in November, below the 5.9% growth that was expected

In Europe:

• Flash PMIs for December fell short of expectations, with manufacturing at 51.4 versus the consensus forecast of 51.8 and a services reading of 51.4 that missed the 53.4 consensus
• Eurozone auto registrations for November were down 8%, a bit worse than the 7.3% decline posted in October

COMPANY NEWS: Shares of Johnson & Johnson are sharply lower, sliding 10% following an explosive report that suggested the company knew for decades about asbestos in its baby powder. Reuters, which examined documents and deposition and trial testimony, said that from 1971 to the early 2000s, Johnson & Johnson was aware that the company's raw talc and finished powders sometimes tested positive for small amounts of asbestos and that they "fretted" over the problem and how to address it while failing to disclose it to regulators or the public. In response to Reuters' findings, Ernie Knewitz, J&J's vice president of global media relations, said that "this is all a calculated attempt to distract from the fact that thousands of independent tests prove our talc does not contain asbestos or cause cancer. Any suggestion that Johnson & Johnson knew or hid information about the safety of talc is false."

Starbucks (SBUX) shares have dipped 3% this morning after the company held its investor day meeting yesterday. Mizuho analyst Vijay Rakesh says the headline from Starbucks' event was a "trimmed" long-term earnings growth algorithm of "at least 10%," down from the prior up 12%. JPMorgan analyst John Ivankoe believes Starbucks laid out a "moderated, realistic plan" for fiscal 2019 through fiscal 2021, adding that improved visibility into U.S. comp improvement can allow Starbucks to sustain a premium multiple.

Wells Fargo analyst Edward Kelly lowered his price target for Costco (COST), saying the company delivered "another somewhat disappointing quarter" as it "once again failed to capitalize on its significant comp sales performance." Near midday, Costco shares are down 8% on the heels of the company's earnings report. Also lower following its earnings report last night is Adobe (ADBE), which has declined 6%.

MAJOR MOVERS: Among the noteworthy gainers was Belmond (BEL), which surged 40% in New York after it agreed to be acquired by LVMH (LVMUY) for $25 per Class A share in cash. Also higher was iKang Healthcare (KANG), which rose 11% after extending its take-private deal termination date.

Among the notable losers was Idera Pharmaceuticals (IDRA), which slid 19% after it presented data from the ongoing phase 2 expnasion of the ILLUMINATE-204 trial investigating tilsotolimod, Idera's intratumorally-delivered toll-like receptor 9, or TLR9 agonist, in combination with ipilimumab. Also lower was Coeur Mining (CDE), which fell 4% after announcing the retirement of CFO Peter Mitchell.

INDEXES: Near midday, the Dow was down 447.69, or 1.82%, to 24,149.69 , the Nasdaq was down 102.97, or 1.45%, to 6,967.36 , and the S&P 500 was down 41.09, or 1.55%, to 2,609.45.