Dow Jones Industrial Average Down Today as Chinese Markets Crash

For July 27, 2015, here are your stock market futures, earnings reports, top stock market news, and stocks to watch...

Stock Futures Today

Stock Market TodayFutures for the Dow Jones Industrial Average forecast a 106-point dip from Friday's close as traders eye domestic earnings reports and a decline in the Chinese stock market.

This morning, major Chinese markets saw their biggest one-day decline since 2007. Shares of Chinese ADRs are having a rough morning, including Alibaba Group Holding Ltd. (NYSE: BABA).

On Friday, the Dow Jones Industrial Average fell 163 points on the day, extending the index's losing streak to four days. A sharp decline in materials and healthcare stocks and a decline in commodity prices offset strong earnings reports by Inc. (Nasdaq: AMZN), Visa Inc. (NYSE: V), and Starbucks Corp. (Nasdaq: SBUX).

Top News in the Stock Market Today

  • The Stock Market Today: This morning, earnings week continues and speculation about a pending rate hike by the U.S. Federal Reserve will be in full swing. The economic calendar for this week is relatively light, with the exception of a very important Q2 GDP reading on Thursday.
  • Oil Outlook: Oil prices continued to decline as traders worried about oversupply on the global markets and the broader market sell-off in China. WTI crude futures for September fell more than 1% to hit $47.63 per barrel. Meanwhile, Brent oil prices slipped 1.5% to hit $53.78 per barrel. Both U.S. and Brent crude are on pace to post monthly losses of more than 10%.
  • Earnings Reports: Companies reporting earnings today include Aaron's Inc. (NYSE: AAN), AbbVie Inc. (Nasdaq: ABBV), American Airlines Group Inc. (Nasdaq: AAL), Barnes Group Inc. (NYSE: B), South State Corp. (NYSE: SSB), and Spirit Airlines Inc. (Nasdaq: SAVE).

Pre-Market Movers in the Stock Market Today: AGN, TEVA, MYL, FCAU, VZ

  • Pre-Market Movers No. 1, AGN: Shares of Allergan Plc. (NYSE: AGN) were up more than 8% this morning on news that it will sell its generic drug unit to Teva Pharmaceuticals Industries Ltd. (NYSE ADR: TEVA) for $40.5 billion. The deal means that Teva has withdrawn its offer to purchase generic drug maker Mylan NV (Nasdaq: MYL). That news sent shares of Mylan into a tailspin this morning, declining more than 14%.
  • Pre-Market Movers No. 2, FCAU: Shares of Fiat Chrysler Automobiles NV (NYSE: FCAU) slipped more than 2% this morning after the National Highway Traffic Safety Administration said it was fining the auto giant $105 million over problems related to its recent safety recalls. 
  • Pre-Market Movers No. 3, VZ: Shares of Verizon Communications Inc. (NYSE: VZ) were down 0.5% this morning on news that employees in nine states are prepared to strike over their current contract. The deal covers roughly 39,000 unionized employees and expires Aug. 1.

Stocks to Watch Today: MHFI, DTV, T

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  • Stocks to Watch No. 1, MHFI: Publishing giant McGraw Hill Financial Inc. (Nasdaq: MHFI) announced it will purchase SNL Financial for roughly $2.2 billion in cash. McGraw said the deal is likely to create a potential $550 million windfall in tax synergies.
  • Stocks to Watch No. 2, T: After one year of review, the Federal Communications Commission (FCC) formally approved the $48.5 billion merger between AT&T Inc. (NYSE: T) and DirecTV (Nasdaq: DTV). This deal combines the nation's second-largest wireless carrier with the nation's largest satellite-TV provider. The deal officially makes the combined firm the largest pay-TV company, surpassing Comcast Corp. (Nasdaq: CMCSA).

Today's U.S. Economic Calendar (all times EDT)

  • Durable Goods Orders at 8:30 a.m.
  • Dallas Fed Manufacturing Survey at 10:30 a.m.
  • 4-Week Bill Announcement at 11 a.m.
  • 3-Month Bill Auction at 11:30 a.m.
  • 6-Month Bill Auction at 11:30 a.m.

What Investors Must Know This Week

About the Author

Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.

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