For Aug. 27, here are your stock market futures, earnings reports, top stock market news, and stocks to watch...
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Thursday) forecast a 183-point rise after New York Fed President William Dudley said yesterday the argument for an interest rate hike was now "less compelling" than just a few weeks ago before volatility rattled the markets.
This morning, Asian stock markets were on the rise thanks to yesterday's record-breaking rebound on Wall Street, which helped reduce investor concerns about the global economy. China's Shanghai Composite Index jumped more than 5.3%, its first gain in six trading sessions, as Wednesday's Dow Jones Industrial Average rally boosted optimism in the region.
The Dow Jones gained 619 points yesterday, bouncing back from Tuesday's record-breaking sell-off and marking the largest one-day leap since November 2011. The Nasdaq surged more than 4.2% thanks to a massive jump in shares of Google Inc. (Nasdaq: GOOG, GOOGL). This morning, an upgrade by Goldman Sachs Group Inc. (NYSE: GS) to the investment firm's "conviction buy" list sent Google stock surging more than 7.7%. Goldman set Google's price target at $800 per share, a 28% premium over today's closing price.
Top News in the Stock Market Today
- Stock Market Today: Investors will look into weekly jobless claims and an update on natural gas inventories in the United States. In addition, the annual two-day Jackson Hole symposium kicks off today, but U.S. Federal Reserve Chairwoman Janet Yellen will not be attending. The event is typically where the U.S. central bank sets its agenda for the final four months of the year, and investors are anxious to determine if the event will provide any insight into whether the Fed will raise interest rates in September or at all in 2015.
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- Oil Outlook: Domestic WTI oil prices were surging off near six-and-a-half year lows. WTI crude prices added nearly 3.5% to hit just shy of $40 per barrel. Meanwhile, Brent oil prices added 3.6% to $44.69 per barrel. Money Morning Global Energy Strategist Dr. Kent Moors anticipates oil prices will rise in the fourth quarter as merger and acquisition activity picks up over the rest of 2015.
- Earnings Reports: Companies reporting earnings include Tiffany & Co. (NYSE: TIF), GameStop Corp. (NYSE: GME), Splunk Inc. (Nasdaq: SPLK), Dollar General Corp. (NYSE: DG), Aeropostale Inc. (NYSE: ARO), J. M. Smucker Co. (NYSE: SJM), and Smith & Wesson Holding Corp. (Nasdaq: SWHC).
Pre-Market Movers in the Stock Market Today: CSX, STJ, ABT, TIF
- Pre-Market Movers No. 1, CSX: Shares of railroad operator CSX Corp. (NYSE: CSX) were up more than 4.2% this morning after the company's received an upgrade from investment firm Stifel Nicolaus. Investment analysts boosted CSX from a "Hold" to a "Buy" after noting the rail stock's recent 18% decline from its July earnings report and said operational improvements will boost the stock.
- Pre-Market Movers No. 2, STJ: Shares of St. Jude Medical Inc. (NYSE: STJ) were up more than 4% on news Abbott Laboratories (NYSE: ABT) is considering a $25 billion cash-and-stock offer for the company. Abbott shares were up more than 3% this morning.
- Pre-Market Movers No. 3, TIF: Shares of Tiffany & Co. (NYSE: TIF) fell more than 4.6% after the luxury goods retailer announced it missed Wall Street earnings expectations for the most recent quarter. The firm released per-share earnings of $0.86, which were $0.05 short of expectations. The company also announced revenue was below expectations after a strong dollar and global economic shortfalls affected markets that have previously provided strong numbers to its baseline.
Stocks to Watch Today: AAPL, AMZN, FB
- Stocks to Watch No. 1, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) were up more than 5.6% as the tech giant added gains for the second straight trading session. Prior to yesterday's bounce, Apple stock had declined for five consecutive trading sessions. The company continues to fight back against broader concerns that weakness in the Chinese economy might affect its sales outlook.
- Stocks to Watch No. 2, AMZN: E-commerce giant Amazon.com Inc. (Nasdaq: AMZN) quietly dismissed several dozen engineers from its department that built the Fire phone. A report by The Wall Street Journal said the company's dismissal of employees from "Lab126" was the first in the division's 11-year history. The company's Fire phone was a spectacular flop after Amazon attempted to enter the smartphone industry with very little fanfare.
- Stocks to Watch No. 3, FB: Social media giant Facebook Inc. (Nasdaq: FB) announced it is testing a virtual assistant service called "M" in its messaging app. The firm's messaging products chief said the new service will allow a virtual assistant to make purchases, book appointments, and schedule deliveries on a user's behalf.
Today's U.S. Economic Calendar (all times EDT)
- GDP at 8:30 a.m.
- Jobless Claims at 8:30 a.m.
- Corporate Profits at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- Pending Home Sales Index at 10 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- Kansas City Fed Manufacturing Index at 11 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 7-Year Note Auction at 1 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 p.m.
What Investors Must Know This Week
- Protect Yourself from China's Crashing Stock Market
- Why the Sell-Off Happened, and How to Make Money on It
- The 4 Real Reasons Oil Prices Are Slipping - and How to Profit
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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.