Dow Jones Today Readies for Start of Earnings Season

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.

dow jones today

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.

  • Earnings News: Shares of restaurant chain Ruby Tuesday Inc. (NYSE: RT) soared more than 18% in post-market hours on news that the company shattered earnings estimates and raised its 2015 earnings outlook. Meanwhile, shares of ARC Group Worldwide Inc. (Nasdaq: ARCW) slipped more than 17% in post-market hours after the company said it missed fourth-quarter earnings estimates.
  • Shaking It Up: Shares of Apple Inc. (Nadsaq: AAPL) were flat on news that the company plans to hold a special event on October 16 in Cupertino, Calif. According to reports, the company plans to unveil updates to its line of Macintosh computers and new iPad models. But the bigger company news came yesterday after activist investor Carl Icahn sent out a tweet suggesting he has prepared to send an open letter to Apple's CEO Tim Cook on Thursday. Some are speculating that Icahn could be pushing yet again for the company to raise its stock buyback and dividend.
  • Earnings Reports: Stay tuned for earnings reports from PepsiCo Inc. (NYSE: PEP), Lindsay Corp. (NYSE: LNN), K12 Inc. (NYSE: LRN), Sandvine Corp. (OTCMKTS: SNVNF), Family Dollar Stores Inc. (NYSE: FDO), and Enzo Biochem Inc. (NYSE: ENZ).

Full U.S. Economic Calendar October 9, 2014

  • Jobless Claims at 8:30 a.m.
  • St Louis Federal Reserve Bank President James Bullard speaks at 9:45 a.m.
  • Wholesale Trade at 10 a.m.
  • EIA Natural Gas Report at 10:30 a.m.
  • ECB President Mario Draghi speaks at 11 a.m.
  • 3-Month Bill Announcement at 11 a.m.
  • 6-Month Bill Announcement at 11 a.m.
  • 52-Week Bill Announcement at 11 a.m.
  • 30-Yr Bond Auction at 1 p.m.
  • Federal Reserve Gov. Daniel Tarullo speaks at 1:10 p.m.
  • Richmond Federal Reserve Bank President Jeffrey Lacker speaks at 1:15 p.m.
  • San Francisco Federal Reserve Bank President John Williams speaks at 3:40 p.m.
  • Fed Balance Sheet at 4:30 p.m.
  • Money Supply at 4:30 p.m.

Now: The Fed's compulsive money printing and near zero interest rates have been pumping up the markets too much, making a correction all the more necessary. And while a downward market correction may be scary to many investors, it will present many new buying opportunities...

[epom key="ddec3ef33420ef7c9964a4695c349764" redirect="" sourceid=""]

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.

Read full bio