Futures for the Dow Jones Industrial Average today (Tuesday, Sept. 15) forecast a 2-point decline as investors look toward this week's critical FOMC meeting. This week, the central bank will decide whether to raise interest rates for the first time since 2006. In Europe, the key ZEW survey indicated a possible slowdown in Germany's economy, the largest in Europe. Meanwhile, the Shanghai Composite slipped again by 3.5%.
The Stock Market Today: On Tuesday, investors will await an update on monetary policy from the Bank of Japan, manufacturing data in Germany and the broader Eurozone, and domestic reports on retail sales and U.S. industrial production. This morning, Dan Ivascyn - the CIO of PIMCO Group - said that there is a less than "50% chance" that the Federal Reserve will raise interest rates, according to a report by Reuters.
Oil Outlook:Oil prices were rising this morning as traders anticipate that U.S. inventories and production are set to decline this week, although investors remain worried about falling demand in Asian markets. WTI prices were up roughly 1.2% to reach $44.58. Meanwhile, Brent oil prices added 1.1% to $46.90 per barrel.
Earnings Reports: This afternoon, United Natural Foods Inc. (Nasdaq: UNFI) is the only company reporting earnings.
Pre-Market Movers in the Stock Market Today: FCAU, BABA, LNG, MYL
Pre-Market Movers No. 1, FCAU: Shares Fiat Chrysler Automobiles NV (NYSE: FCAU) gained roughly 3.3% this morning on news the company's operations will not experience a delay due to concerns over a strike by the United Auto Workers. According to reports, the automaker and the auto union are expected to exercise good faith while working on a new contract for factory workers.
Pre-Market Movers No. 2, BABA: Shares of Alibaba Group Holding Ltd. (NYSE: BABA) were sliding again this morning after concerns about the Chinese economy continue to rattle the stock. The company took another blow over the weekend after Barron's issued a report that said the firm's stock - which is already down 40% this year to date - could fall another 50%. But according to Money MorningChief Investment Strategist Keith Fitz-Gerald, the Barron's report was majorly flawed - here's why...
Pre-Market Movers No. 3, LNG: Activist investor Carl Icahn boosted his stake in natural gas firm Cheniere Energy Inc. (NYSEMKT: LNG) from 8.2% to 9.6% as he takes a bullish stance on U.S. natural gas exporting. Just a few weeks ago, Cheniere agreed to appoint two directors from Icahn's company to its board.
Pre-Market Movers No. 4, MYL: Shares of Mylan NV (Nasdaq: MYL) were up more than 0.5% on news the company has moved forward with another hostile bid for Perrigo Co. Plc. The cash-and-stock deal is set for $27.14 billion.
Stocks to Watch Today: SLH, TWTR, AA, F
Stocks to Watch No. 1, SLH: Shares of Solera Holdings Inc. (NYSE: SLH) gained more than 8.5% yesterday after the software giant announced it will sell itself to private equity firm Vista Equity Partners for roughly $6.5 billion.
Stocks to Watch 2, TWTR: Microblogging giant Twitter Inc. (NYSE: TWTR) may announce the company's newest CEO as soon as this week, according to a report by Re/code. However, the tech site predicts the announcement could be delayed until October or November to align with the firm's earnings report. Founder Jack Dorsey has been working as the interim CEO since Dick Costolo stepped down in July. On Monday, major Twitter investor Chris Sacca called on the company to make Dorsey the permanent CEO, arguing that the ongoing delay is creating uncertainty for investors and that Dorsey is the only natural candidate for the role.
Stocks to Watch 3, AA: Shares of Alcoa Inc. (NYSE: AA) were back in the black this morning on news the aluminum company has reached a deal to boost its supply of aluminum to Ford Motor Co. (NYSE: F) for use in the auto giant's F-150 truck series. The deal is a boon for aluminum manufacturers, as vehicle companies have traditionally favored steel in their production.
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.
