For October 14, 2015, here's what will move the Dow Jones Industrial Average...
Dow Jones Industrial Average News and Stocks to Watch
Dow futures for Wednesday, Oct. 14, 2015, are down 12 points ahead of monthly inflation data, weekly crude inventory levels, and the continuation of a busy earnings week for the markets.
On Tuesday, the Dow Jones Industrial Average dropped 49 points as broader concerns about the Chinese economy again rattled investors' confidence. The decline snapped a seven-day win streak. Meanwhile, traders remain on guard as September-ending earnings trickle out of corporate compliance offices around the country and weak profit expectations remain the norm. According to data released this morning, China's imports slumped by 20% in September, a sign of weak domestic demand and an indication that the nation's economic growth is not on pace with state expectations. This morning, the nation announced a fresh round of stimulus efforts to bolster its sputtering economy.
Here's what else will move the Dow Jones today...
- Today, U.S. retail sales, PPI data, and an update on mortgage applications are in store. On the global front, pay attention to China's announcement of September CPI and PPI figures, as the nation's inflation level comes into focus. Inflation data will be key as the U.S. Federal Reserve continues to weigh its decision on whether it will raise interest rates in 2015. Yesterday, St. Louis Federal Reserve President James Bullard argued that the central bank should begin a process of gradually raising interest rates. Bullard will have a vote on the Fed's policy-making team in 2016.
- Oil prices slipped yesterday after the International Energy Agency announced that a global glut threatens the markets in 2016, while concerns about China's weak imports for September raised concerns about the health of the world's second-largest economy. This afternoon, the U.S. Energy Information Administration will announce weekly inventory crude levels. Estimize analysts project hike of 1 million barrels to inventories. That figure would represent a week-over-week decline of roughly 67%.
- Earnings Reports No. 1, BAC: Before the bell, Bank of America Corp. (NYSE: BAC) will announce third-quarter earnings. Wall Street analysts expect per-share earnings (EPS) of $0.08 on top of $20.754 billion in revenue. Bank of America is one of the top "Too Big to Fail" banks that would be affected by provisions that many Democratic presidential candidates would like to put into place, including risk fees and breaking up the firms.
- Earnings Reports No. 2, NFLX: After the bell, Netflix Inc. (Nasdaq: NFLX) will announce third-quarter earnings. Wall Street analysts expect the company will report a quarterly EPS of $0.34 on revenue of $$1.75 billion.
- Earnings Report No 3, WFC: Before market open, Wells Fargo & Co. (NYSE: WFC) will report third-quarter earnings. Analysts anticipate an EPS of $1.04 on $21.518 billion in revenue.
- Additional companies reporting earnings include Delta Air Lines Inc. (NYSE: DAL) and BlackRock Inc. (NYSE: BLK).
- Stocks to Watch No. 1, JPM: Shares of JPMorgan Chase & Co. (NYSE: JPM) slipped 1.3% after the investment firm announced weaker than expected earnings on Tuesday evening. The Wall Street bank reported earnings of $1.32 per share on $23.69 billion in revenue. Wall Street analysts expected earnings per share (EPS) of $1.39 on $23.93 billion in revenue.
- Stocks to Watch No. 2, CSX: Shares of CSX Corp. (NYSE: CSX) slumped more than 2.3% after the North American train operator beat earnings expectations on Tuesday. The company announced net earnings of $507 million for the third quarter of 2015, versus $509 million for the same period in 2014, which translates to a third-quarter record $0.52 per share, compared to $0.51 in the prior year.
- Stocks to Watch No. 3, BUD: Looks like the fifth time was the charm. Yesterday, Anheuser Busch Inbev SA (NYSE ADR: BUD) announced that its fifth bid to purchase rival SABMiller Plc. (OTCMKTS ADR: SBMRY) has been accepted. The most recent improved offer is reported to be worth more than $100 billion and will merge the world's two largest brewing companies.
Today's U.S. Economic Calendar (all times EDT)
- NFIB Small Business Optimism Index at 6 a.m.
- St. Louis Federal Reserve Bank President James Bullard speaks at 8 a.m.
- Redbook at 8:55 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.
- Treasury Budget at 2 p.m.
What Investors Must Know This Week
- The Fastest Way to Profit from a $709 Billion Industry Shift
- Five Tech Stocks That Soared While the Markets Tanked
- Here's Where the Next Oil Sector Profits Will Be Made
Follow us on Twitter: @moneymorning.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.