Futures for the Dow Jones Industrial Average today (Tuesday, Sept. 22) slumped more than 298 points this morning after Atlanta Federal Reserve Bank President Dennis Lockhart said in a speech that he anticipates the U.S. central bank to tighten monetary policy in either October or December.
On Monday, the Dow Jones Industrial Average gained more than 125 points on the back of a surge in oil stocks and investors shrugging off concerns about the U.S. Federal Reserve's decision last week to maintain interest rates at current levels.
Top News in the Stock Market Today
The Stock Market Today: Today, a light U.S. economic calendar includes the Richmond Fed Manufacturing Index, the FHFA House Price Index, and a speech from Atlanta Federal Reserve President Dennis Lockhart. The markets are most likely to react to China's Caixin Manufacturing PMI Flash report for the month of September. In August, the nation's PMI data showed its manufacturing industry fell at its fastest rate in more than six years. Concerns about China have fueled the global sell-off in recent weeks.
Oil Outlook:Oil prices were falling again this morning on concerns about global economic woes. This morning, WTI prices dipped more than 2.6% to hit $45.45, while Brent oil prices fell 1.8% to hit $48.00. Money Morning Global Energy Strategist Dr. Kent Moors says that supply and demand will work in tandem to lift oil prices over the long term. Many oil watchdog groups like the International Energy Agency (IEA) are expected to raise their 2015 demand figures soon. Here's a breakdown of the oil market's fundamentals.
Biotech Blues: Biotech stocks were slipping again this morning over concerns about a pending statement by Democratic presidential candidate Hillary Clinton indicating her plans to prevent "price gouging" for specialty drugs. The iShares Nasdaq Biotechnology ETF (Nasdaq: IBB) was down more than 2% this morning. Shares of AstraZeneca Plc. (NYSE ADR: AZN), Amgen Inc. (Nasdaq: AMGN),and Celgene Corp. (Nasdaq: CELG) all slipped more than 1.6% in early hours.
Earnings Reports: Companies reporting earnings on Tuesday include Carnival Corp. (NYSE: CCL), AutoZone Inc. (NYSE: AZO), Darden Restaurants Inc. (NYSE: DRI), General Mills Inc. (NYSE: GIS), ConAgra Foods Inc. (NYSE: CAG), and CarMax Inc. (NYSE: KMX).
Pre-Market Movers in the Stock Market Today: AAPL, TSLA, FCX, BAC
Pre-Market Movers No. 1, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) slipped more than 1.1% this morning as the tech giant experiences a sell-off linked to Lockhart's statements. The stock was on the rise yesterday after the company announced it's boosting efforts to build its electric vehicle. The company aims to begin shipments in 2019, according to The Wall Street Journal. Shares of Tesla Motors Inc. (Nasdaq: TSLA) were down more than 1.5% this morning on the news. Some speculate that this scandal could expand to other competitors in Europe.
Pre-Market Movers No. 2, FCX: Shares of Freeport-McMoRan Inc. (NYSE: FCX) slipped more than 4% this morning on news of falling commodity prices.
Pre-Market Movers No. 3, BAC: Shares of Bank of America Corp. (NYSE: BAC) slipped more than 1.6% this morning as shareholders plan to meet today and vote on whether to split the firm's CEO and chairman roles.
Stocks to Watch No. 1, VLKAY: German auto giant Volkswagon AG (OTCMKTS ADR: VLKAY) announced plans to set aside 6.5 billion euros ($7.3 billion) as its initial estimate to pay for the replacement of software central to an emissions scandal that pushed shares down 17% yesterday. The company said its massive allocation toward addressing the problem was a direct attempt to "win back the trust of our customers."
Stocks to Watch No. 2, ASH: Industrial giant Ashland Inc. (NYSE: ASH) saw shares jump more than 4% this morning on news that the company will split into two different publicly traded firms. The first will focus on the production of high-performance lubricants, while the other develops specialty chemicals.
Today's U.S. Economic Calendar (all times EDT)
Redbook at 8:55 a.m.
FHFA House Price Index at 9 a.m.
Richmond Fed Manufacturing Index at 10 a.m.
4-Week Bill Auction at 11:30 a.m.
2-Year Note Auction at 1 p.m.
Atlanta Federal Reserve President Dennis Lockhart speaks at 7 p.m.
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.