Stock Futures Today
Futures for the Dow Jones Industrial Average today (Tuesday, Sept. 1) forecast a 253-point decline after two reports in China indicated the nation's manufacturing sector is ensnared in its worst downturn in several years. The nation's August Purchasing Managers' Index (PMI) dipped to 49.7, down from a reading of 50 in July.
On Monday, the Dow Jones Industrial Average dipped 114 points on the last trading session of August. The Dow Jones Industrial Average finished August with its sharpest monthly downturn in more than five years. It was the worst "August performance" for the Dow in 17 years.
Meanwhile, the S&P 500 and the Nasdaq saw their worst month for declines since May 2012.
Domestic monetary policy speculation, concerns about China's economy, and oil prices headline today's session. Investors remain on edge after Friday's comments by U.S. Federal Reserve Vice Chair Stanley Fischer indicated the central bank is leaving the door open for an interest rate hike in September. Following last week's whirlwind, investors have one question on their minds: Will this market rally stick? Money Morning Chief Investment Strategist Keith Fitz-Gerald answered that question for readers here…
Top News in the Stock Market Today
- The Stock Market Today: Today, investors can anticipate another busy day of economic data. In addition to a speech by Boston Federal Reserve Bank President Eric Rosengren, traders will keep an eye on a report on monthly motor vehicle sales, the PMI Manufacturing Index, the ISM Manufacturing Index, and the July construction spending report.
- Oil Outlook: Domestic WTI oil prices were today sliding after investors took gains off the table from yesterday's surge in prices. On Monday, oil prices swelled after U.S. energy production fell and the Organization of Petroleum Exporting Countries (OPEC) raised concerns about a prolonged low oil price environment in a publication. This morning, WTI prices fell nearly 3% to reach $47.81. Meanwhile, Brent oil prices declined more than 2.1% to $52.99 per barrel.
- Earnings Reports: Companies reporting earnings include Ambarella Inc.
(Nasdaq: AMBA), Dollar Tree Inc. (Nasdaq: DLTR), H&R Block Inc. (NYSE: HRB), and AeroVironment Inc. (Nasdaq: AVAV).
Pre-Market Movers in the Stock Market Today: TRVN, AAPL, CSCO, NVS
- Pre-Market Movers No. 1, TRVN: Shares of Shares of Trevena Inc. (Nasdaq: TRVN) surged more than 40% this morning on news that the drug manufacturer announced strong trial results for its post-surgery pain medication. The drug TRV130 was more effective at helping patients manage pain after a "tummy tuck" surgery.
- Pre-Market Movers No. 2, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) are in focus this morning after the company announced plans to partner with tech giant Cisco Systems Inc. (Nasdaq: CSCO) to boost the performance the firm's mobile devices on Cisco's corporate network.
- Pre-Market Movers No. 3, NVS: Shares of Novartis AG (NYSE ADR: NVS) were on the rise this morning after European regulators have approved the company's skin cancer drugs Tafinlar and Mekinist, a combination used to treat aggressive forms of melanoma.
Stocks to Watch Today: MS, MDT, OSK
- Stocks to Watch No. 1, MS: Investment giant Morgan Stanley (NYSE: MS) joins the headlines after news that the firm slashed its 12-month forecast for the S&P 500 Index by a little more than 3% yesterday. The firm said that it expects lower global growth, higher inflation targets, and several interest rate hikes by the Federal Reserve over the next year. The company set its one-year target to 2,200, down from 2,275.
- Stocks to Watch No. 2, MDT: Shares of Medtronic Plc. (NYSE: MDT) continued to decline in pre-market hours this morning after the company announced it will purchase Medina Medical, a private medical device manufacturer, for $150 million. The private company creates medical devices that treat vascular abnormalities in the brain.
- Stocks to Watch No. 3, OSK: Equipment manufacturer Oshkosh Corp. (NYSE: OSK) announced plans to increase its stock buyback plan by another 10 million shares. The news comes a week after the company announced it won a $6.7 billion contract to manufacture the new light tracks that will replace the U.S. military's Humvees.
Today's U.S. Economic Calendar (all times EDT)
- Gallup US ECI at 8:30 a.m.
- Redbook at 8:55 a.m.
- PMI Manufacturing Index at 9:45 a.m.
- ISM Manufacturing Index at 10 a.m.
- Construction Spending at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- Boston Federal Reserve Bank President Eric Rosengren speaks at 1:10 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.