Dow Jones Industrial Average Down Today on Slowing China Growth

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For Oct. 19, 2015, here are your stock market futures, earnings reports, top stock market news, and stocks to watch…

Stock Futures Today

Dow Jones
Futures for the Dow Jones Industrial Average today (Monday, Oct. 19, 2015) were down 57 points as investors keep an eye on China and a busy week of earnings reports. Early this morning, China reported an annualized GDP of 6.9%, a little ahead of consensus expectations. In addition, the National Bureau of Statistics of China reported that year-over-year industrial production grew by 5.7%, just below forecasts. It was the first time that China’s growth rate fell below 7% since the financial crisis.

On Friday, the Dow Jones Industrial Average jumped 74 points on positive domestic economic data and mixed stock earnings reports. The U.S. Commerce Department reported consumer sentiment showed a strong rebound in early October, suggesting the economic recovery remained on track despite headwinds from a strong dollar and weak global demand that have weighed on the industrial sector.

Top News in the Stock Market Today

  • The Stock Market Today: Today, the focus will be on global economic data when the National Bureau of Statistics of China reports third-quarter GDP and September industrial production. Meanwhile, the United States gets an update on housing with the October NAHB Housing Market Index.
  • Oil Outlook: Oil prices slipped this morning over concerns about broader demand from China. November futures for WTI crude were down more than 1.5% to $46.52 per barrel, while Brent crude slid 2.0% to $49.44. This morning, a report by Saudi Arabia, the largest crude exporter in the world, indicated that the country saw a decline in August exports by 278,000 barrels per day. The decline in exports suggests that the nation’s decline is due to a growing global glut in oil supplies.

Earnings Outlook: MS, IBM, HAL

  • Earnings Reports No. 1: MS: Before the bell, Morgan Stanley (NYSE: MS), fell more than 5.4% after the investment firm reported that third-quarter profits fell by more than 40%. A volatile trading environment reduced its profitability from its trading division. Morgan Stanley announced earnings of $0.34 per share, while Wall Street analysts expected an EPS of $0.66. The investment bank reported revenues of $7.33 billion, off from expectations of $8.64 billion.
  • Earnings Reports No. 2: IBM: After the bell, International Business Machines (NYSE: IBM) will report earnings.  Wall Street analysts anticipate earnings per share of $3.33 on top of $19.56 billion in revenue.
  • Earnings Reports No. 3: HAL: Shares of Halliburton Co. (NYSE: HAL) slipped a little less than 1% after the oilfield services giant reported weaker-than expected revenues. The firm was affected by a number of asset write-offs and costs related to severance. The company reported earnings of $0.31 per share, beating Wall Street expectations of $0.27.
  • Additional companies reporting earnings include Hasbro Inc. (Nasdaq: HAS), Sonic Corp. (Nasdaq: SONC), and HealthStream Inc. (Nasdaq: HSTM).

 Pre-Market Movers: DB, PMCS, WTW

  1. Pre-Market Movers No. 1: DB: Shares of Deutsche Bank (NYSE: DB) gained more than 3% after Germany’s largest financial firm said that it was going to be letting go of number of its top bankers and restructuring its organization.
  2. Pre-Market Movers No. 2: PMCS: Shares of PMC-Sierra (Nasdaq: PMCS) were up nearly 13% after the semiconductor firm announced it has received a $2.4 billion buyout offer from Microsemi Corp. (Nasdaq: MSCC).  Shares of Microsemi added more than 2%.
  3. Pre-Market Movers No. 3: WTW: Shares of Weight Watchers International (NYSE: WTW) surged more than 71% on news that Oprah Winfrey has opened a 10% stake in the weigh-loss company. Winfrey will also join the firm’s board of directors.

Today’s U.S. Economic Calendar (all times EST)                                                                                                                                                                       

  • Housing Market Index at 10 a.m.
  • 4-Week Bill Announcement at 11 a.m.
  • 3-Month Bill Auction at 11:30 a.m.
  • 6-Month Bill Auction at 11:30 a.m.
  • Richmond Federal Reserve Bank President Jeffrey Lacker speaks 12 p.m.

What Investors Must Know This Week

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