Stock market today, July 23, 2014: U.S. markets were up Tuesday after positive housing data instilled confidence in the recovering market, and geopolitical concerns remained muted. The economic calendar is very quiet today, meaning today's market's momentum will rely on strong earnings.
Here's what you should know to make your Wednesday profitable:
Activist Failure: Shares of Herbalife Ltd.(NYSE: HLF) soared more than 25% yesterday after activist investor Bill Ackman failed to instill pessimism in the company's business model. In a highly publicized presentation, Ackman denounced the company as a pyramid scheme, questioning its operations structure and marketing programs. However, Wall Street beat back his criticism, sending the stock through the roof.
Better Days Ahead: Shares of Microsoft Corp.(Nasdaq: MSFT) were on the rise this morning after the company beat revenue estimates. The company saw earnings of $0.55 per share, compared to analyst expectations of $0.60. Revenue of $23.38 billion beat estimates of $23 billion. CEO Satya Nadella also provided a strong outlook for the company. Nadella said that the firm's two revenue losing divisions -- Nokia phones and Bing search - would begin turning a profit by 2016.
The New Probe: Shares of Deutsche Bank AG (USA) (NYSE: DB) were up more than 2.5% this morning despite growing concerns by the New York Federal Reserve that the company's operations are problematic. Reuters reports that the NY Fed is concerned about "shoddy financial reporting, weak technology, and inadequate auditing" practices at the iconic German bank.
Into the Air: Shares of The Boeing Co.(NYSE: BA) jumped more than 1% in premarket hours this morning on news that the company raised its earnings expectations and received higher order estimates for its planes than expected. The company raised its per-share earnings forecast this year from a range of $7.15 to $7.35 to a range of $7.90 to $8.10 per share.
Saudi Surprise: In a surprise announcement this morning, Saudi Arabia, whose stock market has been off-limits to foreign investors, will allow foreign capital and the purchasing of shares next year. The nation is aggressively seeking to draw new capital to its economy, which is valued at nearly $750 billion.
Ukraine on Watch: Growing concerns about Eastern Ukraine will likely weigh on the market this week. This morning, reports indicated that pro-Russian rebels shot down two Ukrainian fighter jets. The attacks came within miles of where the Malaysian airline was taken down last week, raising new concerns about the region and the future of political relations between Russia and the West.
Earnings Reports: Stay tuned for earnings reports from AT&T Inc.(NYSE: T), Boeing Co.(NYSE: BA), Dow Chemical Co.(NYSE: DOW), Delta Air Lines Inc. (NYSE: DAL), Northrop Grumman Corp.(NYSE: NOC), and PepsiCo Inc. (NYSE: PEP).
Today's Economic Calendar: Today's schedule features the EIA Petroleum Status Report and MBA Purchase Applications.
Full U.S. Economic Calendar July 23, 2014
MBA Purchase Applications at 7 a.m.
EIA Petroleum Status Report at 10:30 a.m.
Microsoft shares are up 40% in the last year, and still, Wall Street is reluctant to believe in the turnaround. As is so often the case, Wall Street is wrong. Here's why "Mr. Softy" will continue to rebound...
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.