The Dow Jones news today features the final preparations ahead of the G20 meeting this week and rising tensions on the Korean Peninsula. Dow Jones futures are down 58 points ahead of trading today.
Here are the numbers from Wednesday for the Dow, S&P 500, and Nasdaq:
Markets will be looking for guidance from U.S. Federal Reserve Vice Chair Stanley Fischer when he speaks this evening. Investors will be looking for clues into the timing of the central bank's next interest rate hike. On Wednesday, the Fed released minutes from its June meeting, which indicated a growing divide among policy makers on how to address inflation, when to raise rates, and when to begin reducing the central bank's massive balance sheet.
On the international front, U.S. President Donald Trump said he may push for more economic pressure on China to help reduce the North Korean threat. The United States is asking China, the only major ally of North Korea, to reduce economic ties with the Hermit Kingdom. The Trump administration recently placed sanctions on Chinese firms with ties to North Korea. Trump has also authorized a $1.42 billion arms deal with Taiwan, news that certainly angered Chinese leaders.
This has been a bad year for IPOs. Shares of Tintri Inc. (Nasdaq: TNTR) and Blue Apron Holdings Inc. (NYSE: APRN) both fell below their IPO prices this week. Meanwhile, Snap Inc. (NYSE: SNAP) shares are very close to again falling below their public listing price. Money Morning Chief Investment Strategist Keith Fitz-Gerald has warned investors about the dangers of recent IPOs. Investors need to remember that IPOs are an exit strategy for many private investors, and Silicon Valley leaves too many Americans holding the bag when overhyped stocks reveal their true valuation.
Crude oil prices were bouncing back after a tough trading session on Wednesday. Yesterday, crude prices tanked on news that OPEC exports had increased last month. The news raised concerns about the global oil cartel's ability to curb excessive production. The sell-off also ended a long winning streak for crude prices, which had jumped nearly 11% since hitting a 10-month low in late June. The WTI crude oil price today added 1.5%. Brent crude gained 1.2%. The uptick came after the American Petroleum Institute announced that U.S. crude inventories fell by 5.8 million barrels last week.
The "Retail Ice Age" has claimed yet another victim. Yesterday, True Religion - a retail company best known for its expensive jeans - filed for bankruptcy. The news was hardly a surprise given the alarming rate of bankruptcies hitting the sector this year. Money Morning Capital Wave Strategist and retail expert Shah Gilani has been helping investors make big gains by targeting weakening retail firms. To read his latest insight, visit Wall Street Insights and Indictments.
Three Stocks to Watch Today: TSLA, PSMT, MRK
Shares of PriceSmart Inc. (Nasdaq: PSMT) fell more than 8.5% after the grocery giant fell short of Wall Street earnings expectations. The company reported earnings per share (EPS) of $0.62 on top of $730 million in revenue. Wall Street expected $0.67 on top of $734 million in revenue. Like many of its competitors' shareholders in Costco Wholesale Corp. (Nasdaq: COST) and Wal-Mart Stores Inc. (NYSE: WMT), Pricesmart investors are increasingly wary about the impact of Amazon.com Inc.'s (Nasdaq: AMZN) big splash into the grocery industry with its $13.7 billion bid for Whole Foods Market Inc. (NYSE: WFM).
Shares of Merck Inc. (NYSE: MRK) fell roughly 2% in premarket hours after the firm received bad news from the Food and Drug Administration (FDA). The government agency has halted three studies by Merck to the treatment of multiple myeloma, better known as a type of blood cancer.
Video
What's Hurting the Blue Apron IPO?
Shares of Tesla Inc. (Nasdaq: TSLA) are still under pressure this morning after Wednesday's dismal performance. Shares fell more than 7.2% Wednesday after an analyst at Goldman Sachs Group (NYSE: GS) offered a dire prediction about the company's stock. Goldman said that Tesla stock could be cut in half due to lackluster sales of the Model S. Goldman downgraded TSLA stock and slashed its price target from $190 to $180 per share. The downgrade came after Tesla reported a poorer-than-expected delivery figure for its vehicles. Yesterday's downturn was the sharpest daily decline since June 2016.
Look for earnings reports today from AZZ Inc. (NYSE: AZZ) and Cherokee Inc. (Nasdaq: CHKE). With earnings season in focus, investors likely won't react to quarterly reports until large banks like JPMorgan Chase & Co. (NYSE: JPM) and Wells Fargo & Co. (NYSE: WFC) declare next week.
Thursday's U.S. Economic Calendar (all times EDT)
MBA Mortgage Applications at 7 a.m.
Challenger Job-Cut Report at 7:30 a.m.
ADP Employment Report at 8:15 a.m.
International Trade at 8:30 a.m.
Jobless Claims at 8:30 a.m.
Gallup Good Jobs Rate at 8:30 a.m.
Bloomberg Consumer Comfort Index at 9:45 a.m.
PMI Services Index at 9:45 a.m.
ISM Non-Manufacturing Index at 10 a.m.
EIA Petroleum Status Report at 11 a.m.
Three-Month Bill Announcement at 11 a.m.
Six-Month Bill Announcement at 11 a.m.
Three-Year Note Announcement at 11 a.m.
10-Year Note Announcement at 11 a.m.
30-Year Bond Announcement at 11 a.m.
Fed Balance Sheet at 4:30 p.m.
Money Supply at 4:30 p.m.
Fed Vice Chair Stanley Fischer speaks at 7:30 p.m.