Futures for the Dow Jones Industrial Average today (Thursday, Sept. 10) forecast a 50-point retreat a day after a decline in commodity prices and shares of Apple Inc. (Nasdaq: AAPL) dragged down U.S. markets.
In a conversation with CNBC this morning, hedge fund manager David Tepper said the ongoing drawdown of foreign reserves is fueling market turbulence right now. This morning, Money Morning Capital Wave Strategist Shah Gilani warns that China - which just announced a record outflow of foreign reserves last month - could batter U.S. stocks again. Here's what you can do about it right now.
Yesterday, the Dow Jones fell more than 239 points as oil prices plunged and a late sell-off reversed gains made in early hours of the trading session. Investors remain in a period of volatility as they try to make sense of monetary policy in China, the United States, and Europe.
The downturn followed a rally in global markets, where the Nikkei had its best single day in nearly seven years, rising more than 7.7%. Yesterday, Japanese Prime Minister Abe Shinzo promised to slash the nation's corporate income tax - which is the highest rate of any developed country - by at least 3.3% over the next year.
Top News in the Stock Market Today
The Stock Market Today: Investors will keep an eye on weekly jobless claims, an update on import and export prices. Forex markets will react to news that members of the Bank of England voted 8-1 to keep interest rates at historic lows of 0.5%.
Oil Outlook:Oil prices were up this morning as traders continue to weigh domestic data. This afternoon, the U.S. Energy Information Administration will report domestic crude stocks, as concerns about oversupply were waning ahead of the data. This morning, WTI prices added 0.2% to reach $44.26. Meanwhile, Brent oil prices were up marginally to hit $47.61 per barrel.
Earnings Reports: Companies reporting quarterly earnings reports include Lululemon Athletica Inc. (Nasdaq: LULU), Finisar Corp. (NYSE: FNSR), and Restoration Hardware Holdings Inc. (NYSE: RH).
Pre-Market Movers in the Stock Market Today: CNW, NFLX, BOX
Pre-Market Movers No. 1, CNW: Shares of Con-way Inc. (NYSE: CNW) surged more than 33% this morning on news that XPO Logistics Inc. (NYSE: XPO) will buy the company for roughly $3 billion. The deal is expected to boost the combined company's annual revenue levels to $15 billion.
Pre-Market Movers No. 2, NFLX: Shares of Netflix Inc. (Nasdaq: NFLX) continued their reversal from last week's massive slump after the company expanded on its plans to enter Asian markets including Hong Kong, South Korea, Singapore, and Taiwan in early 2016. The company continues to push toward its goal of expanding into 200 countries by the end of next year. Netflix stock was up more than 0.4% this morning.
Pre-Market Movers No. 3, BOX: Shares of Box Inc. (NYSE: BOX) were up more than 1.6% this morning after the company beat revenue growth expectations and hiked its full-year guidance. The cloud storage company said revenue surged 43% in the July-ending quarter thanks to news that the firm now has more than 50,000 customers. The stock is back above the price of its January IPO but still far below the levels it reached after surging 66% during its first day of trading on the public markets.
Stocks to Watch Today: YHOO, AAPL, LULU
Stocks to Watch No. 1, YHOO: Shares of Yahoo! Inc. (Nasdaq: YHOO) slipped 0.7% this morning after nine financial companies slashed their price outlook for the company's stock. Shares have been under pressure after the Internal Revenue Service denied the firm's request to engage in a tax-free deal to spin off its stake in Alibaba Group Holding Ltd. (NYSE: BABA).
Stocks to Watch No. 2, AAPL: Traders seemed unimpressed by yesterday's product unveiling by Apple Inc. (Nasdaq: AAPL) CEO Tim Cook. The company presented a voice-controlled remote, the newest version of Apple TV, which has an app store, and several announcements about its product lines and its next generation iPhone. However, investors "sold on the news" of the new products, a trend that has occurred after recent product announcements. That is creating a buying opportunity for savvy investors. You see, the Apple stock price will thrive on the new iPhone, iPad Pro, and Apple TV.
Stocks to Watch No. 3, LULU: Shares of Lululemon Athletica Inc. (Nasdaq: LULU) were down nearly 4.5% this morning despite news that the yoga apparel company beat Wall Street second-quarter earnings estimates and raised its outlook. The firm reported per-share earnings of $0.34, ahead of consensus expectations of $0.33.
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.
