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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.