Stocks slammed; Fed rate hike in limbo?; Hedge funds pounded

It looks to be a brutal start to the month of September as Wall Street is getting slammed by new concerns about the Chinese economy.  Stocks (^GSPC) heading deep into the red on two reports showing manufacturing weakness in China.

Kathy Boyle, President of Chapin HIll Advisors, tells Yahoo Finance investors have been mesmorized by the long-running bull market...and now the situation may be unraveling right before their eyes.

"People have gotten very apathetic," she argues. "They have gotten very used to a market that has gone straight up. Everybody's been taught to buy the dips, buy the dips...and it rips up after that."

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Apple taking on Netflix?

Here are some of the stocks the Yahoo Finance team will be watching for you today.

Apple (AAPL) Various reports say the company is in talks with Hollywood executives about creating original programming. That would put Apple in direct competition with streaming services such as Netflix (NFLX) as well as more traditional pay-TV providers such as Time Warner's HBO (TWX).

Dollar Tree (DLTR)  The discount retailer had a very big miss in second quarter profit, while revenue also came in light. Dollar Tree says sales were driven largely because of the acquisition of Family Dollar stores...that deal closed in July. Dollar Tree sees sales in the current quarter and full year to be in the low single digits.

AstraZeneca (AZN) The drugmaker is selling the rights to its late-stage experimental psoriasis treatment to Canada's Valeant Pharmaceuticals (VRX) for what could be as much as $445 million.  Valeant jumped in after Amgen (AMGN) dropped its collaboration with AstraZeneca, citing concerns about the drug's side effects.

Penn West Petroleum (PWE) It is the latest victim of the downturn in oil prices. Penn West says it is slashing its workforce by 35% and eliminating its stock dividend.  The Canadian oil and gas producer is also reducing its capital expenditures as it tries to cut costs.

Whirlpool (WHR) The big appliance maker is trying to snatch British oven manufacturer Aga Rangemaster from Middleby (MIDD). Whirlpool is now making a competing offer for Aga, which agreed in July to be bought by Middleby for $202 million. Middleby produces Viking ranges and other appliances.

Market forecast cuts

Is a new reality dawning? Wall Street banks are now cutting their market forecasts after August’s steep drop. Morgan Stanley (MS) dropped its S&P 500 target, citing slowing growth and likely Fed rate hike, following a similar cut by Credit Suisse (CS) cut last week.

Wall Street’s supposed biggest and brightest aren’t finding things any easier.  Hedge fund heavyweights like David Einhorn of Greenlight Capital, Daniel Loeb of Third Point, and Bill Ackman of Pershing Square are taking a beating in August, right alongside the broader market.

Another area bringing worry to the markets - crude oil’s tumultuous ride. After a steep rise over the past three days, oil’s trimming those gains today on the back of weak China manufacturing reports.

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