Futures for the Dow Jones Industrial Average today (Monday) forecast a 616-point decline, nearly 4% as traders continue to sell off over fears related to the Chinese economy. Shares of Apple Inc. (Nasdaq: AAPL) fell another 6.5% this morning as concerns about sales in the world's second-largest economy continued to rattle traders. Nasdaq futures were down more than 80 points, or 5%, as tech stocks slumped in pre-market hours. Traders around the world have dubbed Aug. 24 "Black Monday."
On Friday, the Dow Jones Industrial Average fell more than 3.1%, continuing the downtrend after Thursday's huge sell off. The Dow slid 530 points. The Nasdaq dipped another 3.5% as technology stocks slumped. Shares of Apple Inc. (Nasdaq: AAPL) continued to slide on China market woes, falling another 6.1% on the day. Apple stock is now officially in bear territory.
The tech giant joins nine other Dow components that are now in bear territory. They are: International Business Machines Corp. (NYSE: IBM), Proctor & Gamble Co. (NYSE: PG), Chevron Corp. (NYSE: CVX), Exxon Mobil Corp. (NYSE: XOM), Intel Corp. (Nasdaq: INTC), Caterpillar Inc. (NYSE: CAT), United Technologies Corp. (NYSE: UTX), Wal-Mart Stores Inc. (NYSE: WMT), and DuPont Co. (NYSE: DD).
Top News in the Stock Market Today
The Stock Market Today: Today, a global rout continues as the Chinese Shanghai Index fell more than 8%, raising concerns about the world's second-largest economy. In the United States, investors will await a speech by Atlanta Federal Reserve Bank President Dennis Lockhart on public pension reform and will look to the Chicago Fed Manufacturing Index for an update on domestic production. More questions about the timing of an interest rate hike will emerge.
Oil Outlook: Oil prices fell to a six-and-a-half year low as energy prices continue to slump on global demand concerns. Domestic WTI oil prices fell nearly 4.3% on the day to $38.71. Oil prices are at their lowest levels since March 2009. Meanwhile, Brent oil prices fell another 4% to $43.62 per barrel primarily on worries about the Chinese economy.
Earnings Reports: A light day of earnings reports includes Hanger Orthopedic Group Inc. (NYSE: HGR) and Premier Inc. (Nasdaq: PINC).
Pre-Market Movers in the Stock Market Today: AAPL, NFLX, SFTBF, GAS, SO
Pre-Market Movers No. 1, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) were down more than 5% this morning, falling below $100 as concerns about iPhone sales and the Apple Watch continue to rattle investors.
Pre-Market Movers No. 2, NFLX: Shares of streaming video giant Netflix Inc. (Nasdaq: NFLX) were down nearly 10% in pre-market hours despite news that the company may partner with Japanese telecom and internet firm Softbank Group Corp. (OTC: SFTBF) in order to sell subscriptions in retail outlets. The deal is interesting because SoftBank owns and operates its own streaming service, Uula.
Pre-Market Movers No. 3, GAS: Shares of AGL Resources Inc. (NYSE: GAS) were up nearly 30% this morning on news that the company has received a $12 billion takeover offer from Southern Co. (NYSE: SO).
Stocks to Watch Today: YHOO, BABA, TSLA, AMZN
Stocks to Watch No. 1, YHOO: Shares of Yahoo Inc. (Nasdaq: YHOO) were off more than 6% this morning as its massive stake in Chines e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA) continues to erode. Alibaba stock was off another 9% this morning over new concerns about Chinese economic growth.
Stocks to Watch No. 2, TSLA, AMZN: This morning's rout isn't sector specific. Shares of Tesla Motors Inc. (Nasdaq: TSLA) were down more than 4.5%, while shares of Amazon.com Inc. (Nasdaq: AMZN) were off more than 4%.
Today's U.S. Economic Calendar (all times EDT)
Chicago Fed National Activity Index at 8:30 a.m.
Existing Home Sales at 10 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.
Atlanta Federal Reserve Bank President Dennis Lockhart speaks at 4 pm.
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.
