If what went down in Shanghai is any indication of the kind of action we’ll be seeing in the rest of the global markets throughout the day, this could be an uncharacteristically ugly December trading day. We’re supposed to be trimming trees, making lists and taking ridiculous family pictures next to some lights, with one of your daughters refusing to smile. And a dog that won’t sit still.

Fretting a gassed stock market shouldn’t be on the holiday agenda. But it’s not just the beatdown in China that will likely make for an angsty session, both at home and abroad. Word that the Fed is about to tweak its policy statement to signal the onset of rate hikes is also unsettling.

“If you are a stock-specific investor but interest rates factor into your forecast in any capacity, then this evening’s WSJ story is pretty important to you,” BTIG’s Dan Greenhaus said late last night. “Listen to what the Fed has to say... as they just may... raise rates... some day.”

Then there’s oil. Oh yeah, oil. Aside from being a potential stepping stone to world peace (see below), this precipitous drop to five-year lows is proving a bit too much, even for the sectors that should benefit, according to Jonathan Sudaria of the London Capital Group

“The geopolitical games being played out in the oil market at the moment are stirring up too much uncertainty and having unintended negative consequences right across the asset spectrum that could be the ruin of many a traders Christmas,” he said. “Equities have had a nice bounce since mid-October so traders will be forgiven for booking profits as we come to year end.”

In the early going, that’s exactly what they’re doing.

Key market gauges

That 18,000 level on the blue chips looks to be drifting further away, with futures on the Dow US:YMZ4 and the S&P US:ESZ4 getting pounded premarket. But that’s still nothing compared with what happened in Asia ADOW, -1.03% , where the Shanghai Composite lost more than 5% in its biggest decline since 2009. Europe SXXP, -3.24% has had no luck shaking off the sellers, and the FTSE 100 UKX, -3.37% got walloped by another profit warning for retailer Tesco TSCO, +2.68% . Gold US:GCG5, understandably, is moving up nicely while crude CLF25, is also seeing a little bounce.

The quote of the day

“And let’s face it, even if Republicans somehow did repeal it, they would have to replace it with their own health-care plan. Once they touch it, they own it, and then if anything goes wrong, suddenly everybody will be complaining about Mitch McConnell-care.” — Barack Obama, filling in for Stephen Colbert on the Colbert Report.

The economy

NFIB small business optimism index for November gets things started really early, while the job openings and labor turnover survey hits at 10:00 a.m. Eastern. At the same time, we’ll get a look a the monthly wholesale trade numbers. Read MarketWatch’s Economic Preview.

On the Fed front, officials are “seriously considering” a key shift in tone at next week’s meeting, according to the Journal. That shift would mean dropping an assurance that short-term interest rates will stay near zero for a “considerable time.” Read: Fed aims to signal shift on low rates.

Earnings

H&R Block HRB, +2.48% shares are off a bit this morning after the tax preparer posted a wider-than expected loss. after Monday’s closing bell. On tap today, AutoZone AZO, -2.08% , Burlington Stores BURL, -1.78% and Krispy Kreme US:KKD all report their quarterly numbers..

The buzz

CTPartners US:CTP had a rough day on Monday. The stock was crushed by 24% after word of a sex-discrimination suit coincided with an announced share offering. After the market mercifully came to a close, the company denied the allegations. And canceled its stock sale. Shares are up more than 2% premarket.

Who needs electric cars when oil prices are spiraling? That’s probably a stretch to say there’s correlation here, but, hey, Tesla TSLA, +0.70% shares have been getting slammed lately. The stock was up at $259 back on Nov. 14, but now it’s down to $214 after a 4% drop yesterday. Read why Tomi Kilgore says the negative technical signals are mounting. The stock has now dropped seven days in a row, tied for its longest losing streak ever. For what it’s worth, it bounced back when it fell for this long back in January 2013, according to Bespoke.

Bespoke

The chart of the day

China is now on top in real economic terms, and its appetite for “the resources of the world, tangible and human” will continue to benefit those who provide them. Ned Schmidt, publisher of the Value View Gold Report, showed just how much agri-equities have outperformed the broad market. The index he uses to track the group just hit an all-time high for the second month in a row. Chinese consumers can live quite happily without iPhones, but not without agri-foods,” he said. “Agri-equities allow your portfolio to benefit from largest real economy in the world. Why would one ignore such an opportunity?” Some ETFs offering exposure to the group include the PowerShares Global Agriculture Portfolio US:PAGG and the Market Vectors Agribusiness ETF MOO, -2.73% .

Ned Schmidt

The call of the day

Plunging oil will bring world peace by 2016, according to David Kotok of Cumberland Advisors. OK, that might be overstating it just a tad. Kotok acknowledges that this call is a “remote, unlikely, and impossible long-shot prediction,” but he made the case for it anyway. Oil at $60 hurts “the naughty folks more than the friendly folks,” he wrote. “The naughty folks — Iran, ISIL, Vladimir Putin, Nicolás Maduro in Venezuela, Al Qaida funding sources, and other culprits — are all negatively impacted when oil is at $60 per barrel, if the low price is sustained. Having less money undermines their ability to make mischief.” He’s clearly not holding his breath but the upside surprise could mean that if these prices last or even get cheaper, “global violence may actually diminish. It will not disappear but it may lessen,” Kotok said. “We hope the good people win.” Here’s another view on what global problems might be caused by cheaper oil

Random reads

Life on Mars? The concept is getting less and less farfetched.

Floyd Mayweather may be one of the most obnoxious personalities on social media, but you wouldn’t wish this on anybody.

The Duke and Duchess take in a Nets game.

Inside Kenyan death squads, an interactive undertaking from Al-Jazeera.

Collegiate video gaming “could become a pipeline for the growing professional circuit.”

America’s worst gay couple? Doubt it.

This is what $500,000 a month gets you in New York City.

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