Futures for Dow Jones Industrial Average today forecast a 142-point decline after China surprised the global markets and announced it will devalue the yuan, a decision that pushed the U.S. dollar higher. The world's second-largest economy continues to struggle and is looking for ways to kick-start growth.
On Monday, the Dow surged more than 230 points as oil prices pushed the energy sector higher and the basic materials sector jumped more than 2.5% on the day. All ten S&P sectors were in the green Monday. Shares of Chevron Corp. (NYSE: CVX) jumped more than 2.85% on Monday, while Exxon Mobil Corp. (NYSE: XOM) added more than 2.2%.
Top News in the Stock Market Today
The Stock Market Today: Today, traders will react to China's decision to allow its currency, the yuan, to depreciate nearly 2% against the U.S. dollar. This is the single largest decline for the yuan in nearly 20 years. Investors will also focus on the NFIB Small Business Optimism Index and an update on wholesale trade.
Oil Outlook:Oil prices slumped this morning after China devalued its currency. WTI crude futures for September fell 2.1% to hit $44.02 per barrel. Meanwhile, Brent oil prices slipped 1.4% to $49.69 per barrel.
Earnings Reports: Companies reporting earnings include Fossil Inc. (Nasdaq: FSIL), Cree Inc. (Nasdaq: CREE), Symantec Corp. (Nasdaq: SYMC), Myriad Genetics Inc. (Nasdaq: MYGN), and Computer Sciences Corp. (NYSE: CSC).
Pre-Market Movers in the Stock Market Today: BABA, SYMC, CG, SYA
Pre-Market Movers No. 1, BABA: Shares of Alibaba stock dipped more than 1.2% after the company announced it will spend $4.63 billion on the electronics chain Suning Commerce Group Inc. Alibaba Group Holding Ltd. (NYSE: BABA) officials said the $4.63 billion price tag will buy the company a 20% stake in Suning. In return, Suning will receive a 1.1% stake in Alibaba.
Pre-Market Movers No. 2, SYMC: Shares of Symantec Corp. (Nasdaq: SYMC) were up more than 5.8% on news that it will sell its data storage business, Veritas, to an investment group that includes Carlyle Group LP (Nasdaq: CG) and Singapore's sovereign wealth fund GIC. The deal is worth roughly $8 billion in cash. Symantec's stock has struggled in recent months as demand for cyber security products is declining among consumers. Shares of the Carlyle Group were up 0.2% this morning.
Pre-Market Movers No. 3, SYA: Shares of life insurance giant Symetra Financial Corp. (NYSE: SYA) gained more than 10% this morning on news that Japan's Sumitomo Life Insurance Co. will purchase the company for roughly $3.8 billion.
Stocks to Watch No. 1, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) were down more than 1.1% this morning after China's surprise decision to devalue its currency. Yesterday, the company announced plans to unveil its latest iPhone and Apple TV during the week of Sept. 7. Apple stock has fallen by $12 since July 21, the day before the firm reported its quarterly results. Apple stock has been weakened by irrational expectations on Wall Street. But we're sticking to a $200 price target for the company. Here's a breakdown on how you can make 74% on Apple stock.
Stocks to Watch No. 2,SHAK: Shares of burger chain Shake Shack Inc. (NYSE: SHAK) were down than 7% this morning after the company reported better than expected earnings after the bell on Monday. Excluding certain items, the burger chain reported per-share earnings of $0.09, besting Wall Street expectations of $0.03 per share. The company said that revenue increased by 75% to $48.5 million.
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.
