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Stock Futures Today
Dow futures forecast a 16-point drop. Shares of Apple Inc. (Nasdaq: AAPL) were down 0.7% pre-market after Bloomberg reported the tech giant will delay the launch of its Apple TV service until 2016. Meanwhile, Bank of America Merrill Lynch (NYSE: BAC) projected that the Chinese devaluation of its currency will drive up prices of iPhones and threaten Apple's position in the world's second-largest economy.
China's devaluation is also taking a toll on oil prices, as well as raising speculation over when the U.S. Federal Reserve might raise interest rates.
Top News in the Stock Market Today
- The Stock Market Today: Today, investors will focus on consumer sentiment and the producer price index, which will aim to continue a string of popular data. Yesterday, retail sales for the month of July offered increased optimism over the broader U.S. economy's growth in the third quarter and raised expectations for a rate hike by the Federal Reserve in September.
- Oil Outlook: Oil prices were up slightly this morning after falling to near six-and-a-half year lows on oversupply concerns. WTI crude futures for September added 0.4% to hit $42.38 per barrel. Meanwhile, Brent oil prices dipped 0.3% to $49.38 per barrel.
- Earnings Reports: Companies reporting earnings tomorrow include J.C. Penney Co. Inc. (NYSE: JCP), Country Style Cooking Restaurant Chain Co. Ltd. (NYSE: CCSC), Advantage Oil & Gas Ltd. (NYSE: AAV), and Liberty TripAdvisor Holdings Inc. (Nasdaq: LTRPA).
Pre-Market Movers in the Stock Market Today: LOCO, KING, JCP
- Pre-Market Movers No. 1, LOCO: Shares of El Pollo Loco Holdings Inc. (Nasdaq: LOCO) cratered more than 18% after the restaurant chain missed Wall Street's expectations on revenue for the quarter and same-store sales after the bell Thursday. The company reported adjusted quarterly profit of $0.19 per share, a penny above estimates, while revenue was shy of analyst projections. However, LOCO said it is confident about the rest of 2015 thanks to an expanded menu.
- Pre-Market Movers No. 2, KING: Shares of King Digital Entertainment Plc. (NYSE: KING) fell nearly 10% after the game developer late Thursday reported a sharp slowdown in sales and bookings. King beat estimates by $0.06 with adjusted quarterly profit of $0.49 per share, with revenue also above Street estimates. One metric that fell short for the Candy Crush maker was the number of monthly active users. Additionally, KING said gross bookings would fall further as new game launches are delayed.
- Pre-Market Movers No. 3, JCP: Shares of J.C. Penney Co. Inc. (NYSE: JCP) jumped more than 4.5% this morning after the retailer posted a smaller than expected quarterly loss. The retailer lost $0.41 per share for the second quarter, but that was smaller than the $0.48 loss Wall Street was expecting. Revenue also beat forecasts, as did a 4.1% increase in comparable store sales.
Stocks to Watch Today: GE, GS, JWN
- Stocks to Watch No. 1, GE: As the company continues to divest financial interests in order to focus on being a pure industrial and manufacturing play, U.S. giant General Electric Co. (NYSE: GE) announced it will sell its retail banking unit, GE Capital Bank, to Goldman Sachs Group Inc. (NYSE: GS). Shares of GE were down more than 0.2% today.
- Stocks to Watch No. 2, JWN: Shares of Nordstrom Inc. (NYSE: JWN) were rising more than 4.7% after the upscale retail giant beat second-quarter profit expectations after the bell on Thursday. The company reported a per-share quarterly profit of $0.93, besting Wall Street estimates by $0.03. JWN also increased its 2015 sales outlook.
Today's U.S. Economic Calendar (all times EDT)
- PPI-FD at 8:30 a.m.
- Industrial Production at 9:15 a.m.
- Consumer Sentiment at 10 a.m.
- Baker-Hughes Rig Count at 1 p.m.
What Investors Must Know This Week
- Why We're Still Bullish on Apple Stock (Nasdaq: AAPL)
- The Best Way to Add Gold to Your Portfolio Today
- The 4 Real Reasons Oil Prices Are Slipping – and How to Profit
Follow us on Twitter: @moneymorning
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.