Dow Jones Today Readies for Start of Earnings Season

Garrett Baldwin

Dow Jones today, October 9, 2014: The Dow Jones Industrial Average soared 274 points Wednesday following the Federal Open Market Committee's release of its September meeting minutes. According to the minutes, many Fed officials took a dovish approach in conversation and are seeking a new way to convince others that they are not prepared to raise interest rates according to the previous timeline.

Yesterday marked the unofficial start to the September-quarter earnings season. After the bell, global aluminum giant Alcoa Inc. (NYSE: AA) announced its beat quarterly result estimates. The company announced that quarterly revenues increased 8% to $6.24 billion. This topped Wall Street's consensus estimate of $5.85 billion. Shares jumped nearly 2% on news.

The S&P Volatility Index (VIX) slumped nearly 10% on the day.

Thursday's economic calendar features a U.S. jobless claims report, the EIA Natural Gas Report, speeches from several members of the Federal Reserve, and a speech from European Central Bank President Mario Draghi.

Here's what else you should know to make your Thursday profitable:

• Stepping Down: Two CEOs announced plans to step down on the same day, sending shares of their companies' stocks on a slide. Shares of Advanced Micro Devices Inc. (NYSE: AMD) slipped more than 7% on news that its CEO Rory Read is stepping down and will be replaced by the company's COO. Meanwhile, shares of The Gap Inc. (NYSE: GPS) were down 8% on news its CEO Glenn Murphy was stepping down and after the clothier downgraded its financial forecast.

• A New Champion: According to the International Monetary Fund, China has overtaken the United States as the world's largest economy. The news comes after the IMF altered a method that measures purchasing power parity. The data measures the buying power of goods in China against that of Americans, even though similar goods are significantly cheaper abroad.

• Merger Mania: The battle for Allergan Inc. (NYSE: AGN) is heating up again. A day after Valeant Pharmaceuticals International Inc. (NYSE: VRX) announced plans to increase its offer to roughly $191, rival Actavis Plc (NYSE: ACT) said it is considering new options to purchase the manufacturer of Botox. According to multiple reports, Allergan executives have refused to consider any bid less than $200 per share.

Garrett Baldwin

About the Author

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Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.

Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.

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