Futures for the Dow Jones Industrial Average today (Thursday) forecast a 153-point decline as U.S. markets prepare for a critical day of economic data. It includes new home sales, weekly jobless claims, durable goods orders, and an earnings report from Nike Inc. (NYSE: NKE).
On Wednesday, the Dow Jones fell 51 points after new economic data suggested that the global economy was slowing down.
According to the September PMI report, U.S. manufacturing growth remained at its lowest levels since August 2013. Meanwhile, Chinese manufacturing growth fell to a six-and-a-half-year low over the last month.
Top News Moving the Dow Jones Industrial Average Today
Today, U.S. Federal Reserve Chairwoman Janet Yellen will make her first public speech since announcing the Fed's rate decision. Yellen will give a speech on inflation pressures, which were central to the Fed's decision last week to maintain current rates.
Investors will also be keeping an eye on developments in Germany, where the German Ifo Business Climate Index for September was released this morning. Economists are concerned that exposure to the ongoing Volkswagen AG (OTCMKTS ADR: VLKAY) emissions scandal could do greater damage to the nation's economy than its exposure to Greece.
U.S. President Barack Obama will meet with China's President Xi Jinping in Washington on what will be the latter's first trip to the United States. The two are expected to address a number of economic issues, including cybersecurity, intellectual property, and currency valuations. Concerns about cyber have grown so serious that the chief security officer of RackspaceHosting Inc. (NYSE: RAX) urged the United States to impose sanctions on China.
Oil prices fell on Wednesday as concerns about production in the United States and other non-OPEC countries weighs down trader sentiment. WTI prices and Brent oil prices will be in focus today when the EIA makes an announcement on domestic crude stocks. On Wednesday, the S&P 500 energy sector fell nearly 2% on the day.
Key Earnings Results to Watch Today
After the bell, athletic shoe and apparel giant Nike Inc. (NYSE: NKE) will report first-quarter earnings. Estimize projects the firm will report earnings per share (EPS) of $1.21 on top of revenue of $8.28 billion. Wall Street analysts expect an EPS of $1.19 on revenue of $8.21 billion. Yesterday, investment firm Piper Jaffray reiterated its "Overweight" rating for NKE stock, with a price target of $120. That represents slight upside from Wednesday's close of $115.43. Barron's urged investors to purchase Nike stock ahead of this earnings report.
Before the bell, home builder KB Home (NYSE: KBH) will announce quarterly earnings. Estimize and Wall Street analysts both anticipate an EPS of $1.21, with revenue ranging between $3.02 billion and $3.03 billion. KBH shares were up more than 1.5% yesterday as investors prepare for an announcement on new home sales and the company's earnings report.
Luxury retailer Pier 1 Imports Inc. (NYSE: PIR) will report second-quarter earnings after the bell. 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.
Other companies reporting earnings include Scholastic Corp. (Nasdaq: SCHL), Jabil Circuit Inc. (NYSE: JBL), Cintas Corp. (Nasdaq: CTAS), and Accenture Plc. (NYSE: CAN).
Stocks to Watch No. 1, TMUS: Shares of T-Mobile Inc. (NYSE: TMUS) are in focus today after the company announced a new $5 per month plan as part of its "Jump on Demand" program. The plan allows new and existing customers to get a new iPhone 6S for $5 per month if they trade in an old 6 or 6 Plus. The contract lasts 18 months and allows users to purchase the phone for an additional $164 at the end of the term. That is a $125 discount from the retail price of a new iPhone.
Stocks to Watch No. 2, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) were ticking downward this morning on concerns about the Chinese economy, which is a major source of sales for the tech giant. Despite the downturn recently for Apple stock, Money Morning Defense & Technology Specialist Michael A. Robinson argues that this is one of the best tech stocks to own over the next decade. You can read about Apple - and get the four other stocks trading at bargain levels - right here.
Today's U.S. Economic Calendar (all times EDT)
Durable Goods Orders at 8:30 a.m.
Jobless Claims at 8:30 a.m.
Chicago Fed National Activity Index at 8:30 a.m.
Bloomberg Consumer Comfort Index at 9:45 a.m.
New Home Sales at 10 a.m.
EIA Natural Gas Report at 10:30 a.m.
Kansas City Fed Manufacturing Index at 11 a.m.
3-Month Bill Announcement at 11 a.m.
6-Month Bill Announcement at 11 a.m.
7-Year Note Auction at 1 p.m.
Fed Balance Sheet at 4:30 p.m.
Money Supply at 4:30 p.m.
Federal Reserve Chairwoman Janet Yellen speaks at 5 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.
