It's Sept. 23, 2015, and Dow futures today are on the move - here's why, plus stocks to watch...
Dow Futures Today
First, here are Tuesday's closing numbers:
U.S. stock futures for Wednesday, Sept. 23, 2015, forecast a 40-point gain amid concerns about global growth in the wake of China's data, reported late last night.
A possible slowdown puts metals and mining, energy, chemical, steel, auto manufacturers, and gaming stocks under the most pressure, according to a report released yesterday by Moody's Investors Services.
On Tuesday, the Dow Jones fell 179 points thanks to a sell-off in commodities and energy stocks over concerns about global economic growth. The markets largely reacted to new worries about the Chinese economy after the Asian Development Bank slashed its forecast for China's annual economic growth to 6.8%, down from its previous expectations of 7.2%.
Falling expectations are weighing on markets around the globe and could have steep consequences for Japan and Australia.
Top News in the Stock Market Today
- Today, oil prices will be in focus as the U.S. Energy Information Administration announces weekly inventory levels for domestic crude stocks. Estimize anticipates a weekly decline of roughly 600,000 barrels, as U.S. shale producers continue to cut rigs and energy production in the wake of falling prices. Oil prices fell on Tuesday as concerns about production in the United States and other non-OPEC countries weighs down trader sentiment. The S&P 500 energy sector declined by 1.4% on heavy volumes.
- Atlanta Federal Reserve Bank President Dennis Lockhart is a popular man these days. Though he voted against an increase in interest rates last Thursday, Lockhart has made numerous statements that suggest he is confident that the central bank will tighten monetary policy by December. He will give his third speech in three days in Columbus, Ga. today and will likely continue to make the case for a rate hike at the October or December FOMC meeting.
Key Earnings Results for September 23, 2015
- Luxury retailer Pier 1 Imports Inc. (NYSE: PIR) will report second-quarter earnings today. Wall Street consensus calls for earnings of $0.08 per share on top of $435.59 million in revenue. Estimize anticipates an EPS of $0.08 on revenue of $431.16.
- After the bell, metals and mining firm Worthington Industries Inc. (NYSE: WOR) reports first-quarter earnings. Wall Street analysts expect earnings per share of $0.49 on top of $855 million in revenue.
- After the bell, furniture giant Steelcase Inc. (NYSE: SCS) is expected to report per-share earnings of $0.33 on top of $794.50 in revenue for the second quarter.
Stocks to Watch Today: DIS, TSLA, AAPL, WYNN, LVS, MGM, CI, AET, HUM, ANTM
- Stocks to Watch No. 1, DIS: Shares of Walt Disney Co. (NYSE: DIS) are in focus this morning on news that its revenue-driver ESPN plans to slash 200 to 300 jobs in the next few months as part of an effort to slash $100 million from its 2016 budget. USA Today explains that it's part of a broader cutback planned for 2017. News of these layoffs comes just a month after a large sell-off in media stocks was fueled by news that more Americans are either cutting the cable cord or seeking less expensive cable packages that lack ESPN, which comes at a premium price in many offerings.
- Stocks to Watch No. 2, TSLA: Shares of Tesla Motors Inc. (Nasdaq: TSLA) slipped more than 2% on Tuesday after tech giant Apple Inc. (Nasdaq: AAPL) announced plans for its upcoming electric vehicle. The Wall Street Journal reported Apple is developing the car under the name "Project Titan." The company has already hired a few seasoned automotive industry veterans to join the team and is looking to build the division's workforce to 1,800 employees. So, what does this mean for both companies? Go here to read a breakdown of Apple's announcement and what to expect from both car companies.
- Stocks to Watch No. 3, WYNN: Gaming stocks will attempt to rebound today after a large sell-off was triggered yesterday over concerns regarding companies' exposure to Macau, the largest gaming city in China. Shares of Wynn Resorts Ltd. (Nasdaq: WYNN), Las Vegas Sands Corp. (NYSE: LVS), and MGM Resorts International (NYSE: MGM) could see higher than usual volumes today after all declining more than 2.8% on Tuesday.
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- Stocks to Watch No. 4, AET: Two insurance megadeals could be in jeopardy after both Republican and Democratic lawmakers raised concerns during a Senate hearing about competitive offerings for consumers. The hearing centered on the potential $47 billion merger between Anthem Inc. (NYSE: ANTM) and Cigna Inc. (NYSE: CI), and the $37 billion deal between Aetna Inc. (NYSE: AET) and Humana Inc. (NYSE: HUM). Senator Richard Blumenthal (D-CT) raised concerns about earlier deals that raised consumer prices and called these mergers the "triumph of hope over experience."
Today's U.S. Economic Calendar (EDT)
- MBA Mortgage Applications at 7 a.m.
- PMI Manufacturing Index Flash at 9:45 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 2-Year FRN Note Auction at 11:30 a.m.
- Atlanta Federal Reserve Bank President Dennis Lockhart Speaks at 12:30 p.m.
- 5-Year Note Auction at 1 p.m.
What Investors Must Know This Week
- $200 Trillion Debt Bubble to Spark Massive Sell-Off
- Cash In on a Strong Dollar and Weak Stocks
- How to Double Your Money: A Step-by-Step Guide
Follow us on Twitter: @moneymorning.
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About the Author
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.