Stock market today, Sept. 15, 2014: All three major U.S. stock markets were down Friday, while the S&P Volatility Index (VIX) soared more than 10% intraday. Economic concerns tied to the new round of sanctions against Russian oil and gas companies weighed heavily on oil stocks.
This week, investors will turn their attention to the Fed Open Market Committee, which kicks off a meeting on Tuesday. The markets remain focused on the central bank's plans to manage interest rates in the near term. Consensus expectations are set that the Federal Reserve will hike interest rates by June 2015, its first possible increase since December 2008.
Here's what else you should know to make your Monday profitable:
Merger Mania: The world's second-largest beer brewer SABMiller Plc. (OTCMKTS ADR: SBMRY) has approached its Dutch rival Heineken NV (OTCMKTS ADR: HINKY) about a potential acquisition of the iconic brand. However, Heineken's controlling family, which owns a little more than 50% of the company, has promised to keep the brewery independent and turned down SABMiller's initial offer. According to multiple reports, SABMiller is attempting to acquire a number of competitors in an effort to ward off a takeover bid from its chief rival Anheuser-Busch InBev (NYSE ADR: BUD).
Spurning Nasdaq: Despite a guarantee that the company could have joined the Nasdaq 100 Index in its first hours of trading, Alibaba Holding Group Ltd. (NYSE: BABA) acknowledged over the weekend that it chose the New York Stock Exchange for its U.S. public listing due to concerns over Nasdaq's struggles during the 2012 IPO of Facebook Inc. (Nasdaq: FB). The Alibaba IPO, slated for Sept. 19, could raise more than $21 billion, which would make it the largest IPO in market history.
A Strong Debut: Despite a topsy-turvy week for Apple Inc. (Nasdaq: AAPL) stock, the company has already seen strong sales for its new release of the iPhone 6 Plus. According to the Boy Genius Report, Apple sold out versions of the iPhone 6 Plus (retailing at $299) within hours of the online pre-order debut. In addition, the smaller iPhone 6, which retails at $199, was also in short supply. To read why Apple stock is poised to rise thanks to the strong debut of the iPhone 6 and its other new devices and surveys, be sure to read our recent report on the company's next move.
Russian Roundup: The latest round of sanctions from the West against Russia is likely to create more economic havoc than initially expected. First, the Russian government announced it will likely expect a budgetary shortfall in the coming years. According to MarketWatch, Russia's government will be short 80 billion rubles ($2.1 billion) in 2015, 220 billion rubles in 2016, and 270 billion rubles in 2017. According to Oilprice.com, more than 50% of the nation's 2014 budget will be financed by oil and gas production. In addition, the new sanctions, which affect multiple Russian oil giants' access to European financing, could also force a number of global oil companies like Exxon Mobil Corp. (NYSE: XOM), Royal Dutch ShellPlc. (NYSE: RDS.A), and Total SA (NYSE: TOT) to abandon their joint ventures with Rosneft OAO and Gazprom OAO.
The End is Near: Shares of RadioShack Corp. (NYSE: RSH) fell another 10% on Friday, with the stock now trading below $1. Last week, the company announced that it's considering a number of strategic options with its creditors, which could include bankruptcy. The iconic electronics seller is considering a $585 million combined rescue loan from Standard General and bank UBS AG (NYSE: UBS) to help it pay off existing debts and credit it owes to GE Capital.
Today's Economic Calendar: Today's schedule features the Empire State Manufacturing Survey and an update on monthly industrial production.
Earnings Reports: Stay tuned for earnings reports from Analogic Corp. (Nasdaq: ALOG), Corinthian Colleges Inc. (Nasdaq: COCO), and Fabrinet (NYSE: FN).
Full U.S. Economic Calendar September 15, 2014
Empire State Manufacturing Survey at 8:30 a.m.
Industrial Production at 9:15 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.
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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.