U.S. futures indicated a sharply lower open on Tuesday amid speculation over when the Federal Reserve could raise interest rates. This comes after Fed Gov. Lael Brainard -- a known dove -- said the central bank should be cautious in raising rates too quickly. The U.S. market rallied on Brainard comments late Monday, but that sentiment did not translate to other foreign markets. All of the Asian markets closed in the red; the European markets were also all down with a few hours left until the close.
Oil prices are also in focus after the International Energy Agency said global demand growth was slowly by more than previously thought. The IEA expects the slowdown to continue in 2017. Benchmark West Texas Intermediate and Brent Crude oil were both down 2.4% and 1.9%, respectively.
Meanwhile, Wells Fargo (WFC) is taking action, eliminating all product sales goals for its retail bankers. Shares were slightly lower before the bell. This comes after being fined $185 million to resolve claims bank employees opened accounts without customers' approval.
"We are eliminating product sales goals because we want to make certain our customers have full confidence that our retailer bankers are always focused on the best interests of customers," said CEO John Stumpf in a statement.
It was revealed last week that the bank opened more than 2 million accounts that customers may not have known about. Wells fired 5,300 employees over the improper sales practice. Wells is a holding in Jim Cramer's Action Alerts PLUS portfolio.
In M&A news, Japan's Renesas Electronics (RNECY) plans to acquire Intersil (ISIL) . Both of the company's stock was up on the news. Renesas will acquire all of its U.S. rival's outstanding shares for about $3.2 billion, or $22.50 per share, in cash, which represents a 43.9% premium. Intersil's strength lies in power management chips and analog chips used for industrial, infrastructure, automotive and aerospace purposes.
Blue Buffalo Pet Products (BUFF) shares were down by more than 5% after announcing a secondary offering. The company announced that some of its stockholders intend to offer for sale an aggregate of 14,300,000 shares of common stock. Blue Buffalo is no offering any shares of common stock in the proposed offering and will not receive any proceeds from the sale of shares. The Wall Street Journal reports that investment firm Invus is selling 12.5 million shares. The offering is expected to close on Sept. 16, 2016.
Finally, Oraph is not giving away cars anymore, but is now working with Weight Watchers (WTW) to find a new CEO. Shares were up in early trading after the company announced that current CEO James Chambers is resigning effective Sept. 30. In the interim, the board established a committee that includes Oprah Winfrey to search for a permanent CEO.