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Stock Futures Today
Futures for the Dow Jones Industrial Average today (Tuesday) forecast a 270-point gain on expectations of future stimulus by the People's Bank of China.
The stock market was closed on Monday due to the observance of Labor Day in the United States. Yesterday, shares of mining and commodities giant Glencore fueled European markets to gains after the firm announced plans to slash its debt costs by more than 30%. Meanwhile, China stocks slumped after a four-day break from trading.
On Friday, the Dow Jones was down 267 points after the U.S. Labor Department announced the unemployment rate hit 5.1% in the month of August – the lowest U.S. unemployment rate in seven years. The U.S. economy created 173,000 jobs, which was fewer than expected. Although China's stock markets were closed Friday, the Japanese Nikkei hit a seven-month low ahead of U.S. jobs data. The index fell more than 2.3% as concerns about the Japanese economy continue to rattle investors.
Top News in the Stock Market Today
- The Stock Market Today: The markets are keeping a very tight focus on China, where the nation announced a record decline in monthly foreign reserve assets as the central bank attempts to shore up concerns over capital outflows and in the wake of its recent devaluations of the yuan. According to data from the People's Bank of China, the nation's forex reserves slumped by $93.9 billion in August to settle at $3.557 trillion. The bad news continued this morning after the General Administration of Customs announced Chinese exports slipped for the second straight month. Exports from the world's second-largest economy slipped 5.5% year over year in terms of dollar amount. In July, this figure fell 8.3%.
- Oil Outlook: While other members of OPEC have voiced concerns about falling oil prices, Saudi Arabia announced it will maintain high levels of production for the foreseeable future. The cartel's largest oil producer said it will produce roughly 10.2 million to 10.3 million barrels a day during Q4 2015. As Money Morning Global Energy Strategist Dr. Kent Moors has explained, global demand has remained robust, despite concerns about demand from China and other nations that are experiencing financial headwinds. This morning, WTI prices were off roughly 0.6% to reach $45.75. Meanwhile, Brent oil prices ticked up roughly 3% to $47.892 per barrel.
- Earnings Reports: Companies reporting quarterly earnings reports include Men's Wearhouse Inc. (NYSE: MW), Pep Boys – Manny Moe & Jack (NYSE: PBY), Korn/Ferry International (NYSE: KFY), Yingli Green Energy Holding Co. Ltd. (NYSE ADR: YGE), and TiVo Inc. (Nasdaq: TIVO).
Pre-Market Movers in the Stock Market Today: DIS, DTV, NKE, AAPL, FIT
- Pre-Market Movers No. 1, DIS: The NFL football season kicks off this week, bringing a number of companies with close ties to the league and its advertising revenue into focus. Investors should keep an eye on Walt Disney Co. (NYSE: DIS) – the owner of ESPN, shoe and sports apparel giant Nike Inc. (NYSE: NKE), and the broadcaster of NFL Sunday Ticket, DIRECTV (Nasdaq: DTV) in what could be a record-breaking year for both revenue and marketing budgets in 2015 for the league.
- Pre-Market Movers No. 2, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) are in focus this morning as the company prepares for a major media event tomorrow in San Francisco. Many are speculating the company will unveil a new product or service, which could include the next series of its iPhone or the new functionality of its Apple TV, which is expected to include Siri in its operating system.
- Pre-Market Movers No. 3, FIT: Shares of Fitbit Inc. (NYSE: FIT) surged more than 9% after the health and wellness technology firm received an upgrade from investment house Morgan Stanley (NYSE: MS).
Stocks to Watch Today: APLCY, MSADY, BRK.A, CSX
- Stocks to Watch No. 1, APLCY: Shares of Amlin Plc. (OTCMKTS ADR: APLCY) will likely surge today after the British insurance giant agreed to be purchased by Japan's MS&AD Insurance Group Holding Inc. (OTCMKTS: MSADY) for $5.3 billion. Amlin shares trading on the London Stock Exchange surged more than 32% this morning. The deal will not require any equity finance, as the Japanese firm will pay with cash and holdings.
- Stocks to Watch No. 2, BRK.A: Reuters reports several U.S. operators could be exploring the suspension of their services should Congress not provide exemptions to a Jan. 1 deadline that forces freight companies to adopt new safety technologies. Berkshire Hathaway Inc. (NYSE: BRK.A), the owner of BNSF Railway Company, has already said it is exploring a suspension if it's not exempt from an order to implement tech called positive train control, or PTC. Meanwhile, CSX Corp. (NYSE: CSX), the nation's third-largest freight handler, has told the National Transportation Safety Board it will likely not meet the deadline. The technology has been pushed by Congress and the NTSB after the deadly May Amtrak derailment that killed eight passengers.
Today's U.S. Economic Calendar (all times EDT)
- NFIB Small Business Optimism Index at 6 a.m.
- Gallup US Consumer Spending Measure at 8:30 a.m.
- Labor Market Conditions Index 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.
- TD Ameritrade IMX at 12:30 p.m.
- 3-Year Note Auction at 1 p.m.
- Consumer Credit at 3 p.m.
What Investors Must Know This Week
- Is This a Bear Market? This Indicator Says Yes
- U.S. Dollar Drops as Global Stock Markets Decline
- Oil Price Forecast Shows Oil Headed for a Rebound
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.