Stock Futures Today
This morning, the Japanese stock market, the Nikkei, surged more than 7.7% on the tailwind of Tuesday’s global rally and its government’s announcement of a pro-business tax policy. Japanese Prime Minister Abe Shinzo promised to slash the nation’s corporate income tax – which is the highest rate of any developed country – by at least 3.3% over the next year.
Meanwhile, European markets were up on stronger economic data and increased optimism over Japan’s tax cut and growing expectations that China will take further action to stimulate its economy.
This morning, China’s stock market – the Shanghai Composite – added another 2.3%.
Top News in the Stock Market Today
- The Stock Market Today: U.S. markets look to extend their rally from Tuesday. Investors will keep an eye on MBA mortgage applications, the quarterly services survey, and July’s job openings and labor turnover (JOLTS) report. However, the bigger news could be coming from outside U.S. borders, as central banks in Canada, the UK, and New Zealand are all poised to make announcements about monetary policy.
- Oil Outlook: Oil prices slipped again this morning on concerns about growing oversupply in the global energy markets – although today’s worldwide stock rally has helped support prices. This morning, WTI prices were off more than 1.5% to reach $45.23. Meanwhile, Brent oil prices declined about 1.4% to $48.80 per barrel. Prices have seesawed in recent weeks, as investors weigh global demand concerns against an ongoing showdown between OPEC producers and the West. OPEC producers – principally Saudi Arabia – have been attempting to drive competition out of the market, with U.S. shale producers clearly in their target lines. Money Morning Global Energy Specialist Dr. Kent Moors explains that OPEC’s strategy has fallen apart, and certain investors can profit from their pending loss…
- Earnings Reports: Companies reporting earnings include Palo Alto Networks Inc. (NYSE: PANW), Barnes & Noble Inc. (NYSE:BKS), Krispy Kreme Doughnuts Inc. (NYSE: KKD), Box Inc. (NYSE: BOX), Conn’s Inc. (Nasdaq: CONN), and Hovnanian Enterprises Inc. (NYSE: HOV).
Pre-Market Movers in the Stock Market Today: AAPL, UAL, CSX, M
- Pre-Market Movers No. 1, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) were up 1.1% as the tech giant prepares for a major media event today in San Francisco at 1 p.m. PST. Many are speculating the company will unveil a new product or service, which could include the next iPhone or new functionalities of its Apple TV. Here is an investor’s guide to today’s AAPL event, and a few surprises that might be in store…
- Pre-Market Movers No. 2, UAL: Shares of United Continental Holdings Inc. (NYSE: UAL) were off more than 0.9% this morning on news that the airline company has replaced its CEO after an internal inquiry over a federal investigation associated with the New York and New Jersey Port Authority. The company announced Oscar Munoz, a board member and former president and COO of CSX Corp. (NYSE: CSX), has replaced Jeff Smisek, who resigned Tuesday.
- Pre-Market Movers No. 3, M: Retail giant Macy’s Inc. (NYSE: M) is in focus this morning on news that the company plans to shutter at least 35 to 40 of its underperforming locations, or roughly 5% of its stores. The company said the cost-cutting effort will begin in early 2016. Shares of Macy’s stock were up more than 0.5% this morning.
Stocks to Watch Today: PANW, YHOO, BABA, CLR
- Stocks to Watch No. 1, PANW: After the bell, Palo Alto Networks Inc. (Nasdaq: PANW) will report earnings. Estimize reports that traders expected strong earnings from the cyber-security giant in the wake of recent cyber attacks over the last few months. However, the company’s stock has fallen along with other tech stocks due to exposure to broader concerns about the Chinese economy. Estimize predicts that the company will report per-share fourth-quarter earnings of $0.26 on revenue of $258.12 million, while Wall Street consensus expects per-share earnings of $0.25 on revenue of $255.78 million.
- Stocks to Watch No. 2, CLR: Shares of Continental Resources Inc. (NYSE: CLR) were in focus this morning after the firm announced plans to slash its capital spending this year by as much as $350 million. The independent oil and natural gas producer has seen its stock decline by more than 50% in the last year as energy commodity prices remain subdued.
- Stocks to Watch No. 3, YHOO: Shares of Yahoo! Inc. (Nasdaq: YHOO) were off more than 2.2% this morning after the IRS rejected the tech giant’s proposal to spin off its Alibaba Group Holding Ltd. (NYSE: BABA) stock holdings into a tax-free entity. According to USA Today, the tax agency said that it will not permit the tax spin-off, leading Marissa Meyer’s company to withdraw its proposal.
Today’s U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- Redbook at 8:55 a.m.
- JOLTS at 10 a.m.
- Quarterly Services Survey at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 10-Year Note Auction at 1 p.m.
What Investors Must Know This Week
- Is This a Bear Market? This Indicator Says Yes
- U.S. Dollar Drops as Global Stock Markets Decline
- Oil Price Forecast Shows Oil Headed for a Rebound
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