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Stock Futures Today
Futures for the Dow Jones Industrial Average today (Monday, Aug. 31) forecast a 159-point decline after Chinese stocks cratered again this morning. The Chinese Shanghai Composite Index fell more than 3% this morning as growth fears continue to rattle investors. As Money Morning Global Credit Strategist Michael Lewitt explains, the U.S. Federal Reserve's opacity is suffocating global markets. Chinese stocks are down roughly 40% since mid-June.
On Friday, the Dow Jones slipped more than 100 points in the final hour, but rallied just before the close. The decline came after a key official at the Federal Reserve suggested an interest rate hike in September is still possible. Vice Chair Stanley Fischer said recent economic data and developments in the markets will determine whether the central bank takes action next month to tighten monetary policy. Shares of Goldman Sachs Group Inc. (NYSE: GS) and Johnson & Johnson (NYSE: JNJ) weighed down the Dow on the day, falling 1.2% and 1.4%, respectively.
Top News in the Stock Market Today
- The Stock Market Today: Today, investors will keep an eye on the Chicago PMI and the Dallas Fed Manufacturing Survey.
- Oil Outlook: This morning, WTI crude oil prices slumped after Chinese markets cratered. WTI prices fell 1.9% to hit $44.33. Meanwhile, Brent oil prices fell more than 2.3% to $48.88 per barrel. Markets remain uncertain about the timeline of potential monetary policy actions by the Federal Reserve.
- Earnings Reports: Companies reporting earnings include iGate Corp. (Nasdaq: IGTE), E-Commerce China Dangdang Inc. (NYSE: DANG), Nordic American Tankers Ltd. (NYSE: NAT), Brown Shoe Co. Inc. (NYSE: BWS), and Southern Copper Corp. (NYSE: SCCO).
Pre-Market Movers in the Stock Market Today: AAPL, INTC, JCP, PSX, BRK.A
- Pre-Market Movers No. 1, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) were moving this morning on news that the tech giant will more than double the retail cost of its next generation of Apple TV. According to a report by Apple blog 9to5Mac.com, company executives are considering a starting price of either $149 or $199. That is a significant boost from its current $69 fee.
- Pre-Market Movers No. 2, INTC: Shares of Intel Corp. (NYSE: INTC) were up marginally this morning after the firm's stock was upgraded to "Outperform" by Northland Capital Markets. The investment firm's analyst set a price target of $32, citing stronger a valuation due to a stronger outlook for the global computer market.
- Pre-Market Movers No. 3, JCP: Shares of J.C. Penney Co. Inc. (NYSE: JCP) jumped nearly 4% this morning after Deutsche Bank (NYSE: DB) upgraded the retail stock from "Hold" to "Buy."
- Pre-Market Movers No. 4, PSX: Shares of oil refiner Phillips 66 (NYSE: PSX) were up more than 3% this morning after Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A) announced it has built a 10.8% stake in the firm. Buffett's stake is worth roughly $4.48 billion, according to the U.S. Securities and Exchange Commission.
Stocks to Watch Today: PBF, GE, SPLS, ODP
- Stocks to Watch No. 1, PBF: Shares of oil refining giant PBF Energy Inc. (NYSE: PBF) are in focus after reports of a chemical leak at a company refinery in Delaware. Reports indicate that three workers were sent to the hospital. Last week, the same refinery was shut down after a fire and a mechanical malfunction.
- Stocks to Watch No. 2, GE: Shares of General Electric Co. (NYSE: GE) are in the news today after the company announced it will not relocate to Texas. According to a report by Bloomberg, the firm is unlikely to move to Texas because U.S. Congressman Jeb Hensarling opposes the Export-Import Bank. The company will be relocated from its Connecticut headquarters due to high taxes. However, the Export-Import Bank, which is currently up for debate in Washington, provided roughly $2.6 billion to General Electric in fiscal year 2013, according to the Mercatus Center at George Mason University.
- Stocks to Watch No. 3, SPLS: Office retailer Staples Inc. (Nasdaq: SPLS) announced late Friday that it will delay its merger with Office Depot Inc. (NYSE: ODP) after the Federal Trade Commission requested additional information about the deal. The delay will last 45 days while it meets the request for information on the deal, which would combine the nation's two largest office retailers.
Today's U.S. Economic Calendar (all times EDT)
- Chicago PMI at 9:45 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.
- Farm Prices at 3 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.