Stock market today, Oct. 13, 2014: U.S. futures were mixed this morning, despite global stocks being in the red again. Today's session will likely see light trading volumes due to the U.S. Columbus Day holiday.
The September-quarter earnings calendar kicks into high gear this week. Tomorrow, investors are keeping an eye on a number of important bellwether companies, including banking giants Citigroup (NYSE: C), JPMorgan Chase & Co. (NYSE: JPM), and Wells Fargo & Co. (NYSE: WFC).
Now, with so many bears out in force, our Chief Investment Strategist Keith Fitz-Gerald explains the strategy you need to trade after a "market reversal."
Here's what else you should know to make your Monday profitable:
Oil Prices Today: As rising supplies and wariness about demand continue to hit the global oil markets, crude prices slipped to four-and-a-half year lows today. According to various reports, members of OPEC have privately told trading audiences that they are comfortable with global crude prices in the $80 range, and both Saudi Arabia and Kuwait announced they will not cut production.Reuters reports that Saudi oil ministers have told market participants to prepare for low prices for an extended period, perhaps aimed at curbing expanding production from rivals like the United States. However, falling prices could create a larger geopolitical mess in nations where oil revenues are central to spending on social welfare programs, as Money Morning's Global Energy Strategist Dr. Kent Moors explains.
Gold Prices Today: Spot gold prices hit a one-month high today at $1,237.48 per ounce.
The Next Subprime Crisis:Reuters reports that U.S. regulators are asking banks for more insight into their auto financing exposure. A recent spike in subprime auto lending has fueled concern from Washington agencies about the health of Americans' finances. In addition, auto repossessions increased by 70% in the second quarter compared to the same period last year, according to Experian Automotive. The subprime auto loan crisis is a story we explored back in April 2013. And our Shah Gilani blew the doors off this brewing crisis fueled by collusion between the U.S. government and the auto industry just a few months ago.
Twitter Cash: Shares of Twitter Inc. (Nasdaq: TWTR) were up nearly 1% this morning on news that the company will partner with French bank Groupe BPCE to allow users to transfer money via tweets. The Financial Times reports that the service will begin sometime this week for anyone with an account at Groupe BPCE and a Twitter handle.
Merger Mania: The Wall Street Journal reports that Canadian Pacific Railway Ltd. (NYSE: CP) approached CSX Corp. (NYSE: CSX) last week about merging the two North American railroad operators. However, CSX rejected the deal. As Money Morning's Global Energy Strategist Dr. Kent Moors has explained, rail companies are the biggest beneficiaries of the energy production boom in the Bakken region of Montana and North Dakota. The combination between these two giants would strengthen operations and create a $62 billion firm with a number of competitive advantages. However, one of the largest obstacles to a deal between Canadian Pacific and CSX would be gaining approval from its regulator, the U.S. Surface Transportation Board. Shares of CSX are up more than 8% this morning.
Banks Behaving Badly: On Saturday, Federal Reserve Governor Daniel Tarullo told an audience at the Institute of International Finance that recent banking scandals cannot be chalked up to just a few bad actors. Tarullo said that the recent slate of scandals, from mortgage-backed securities fraud to Libor manipulation, isn't the result of random criminals. Instead, Tarullo cited a fundamental problem on Wall Street with the structure of incentives and managerial expectations. Of course, this isn't news to Money Morning readers. Our Capital Wave Strategist Shah Gilani, has been exposing the problems with banking incentives and culture for years, including his latest investigation into secret tapes that reveal Goldman Sachs' (NYSE: GS) ability to skirt oversight from its regulators.
Winners and Losers: Shares of Rio Tinto Plc. (NYSE ADR: RIO) were up nearly 3% in pre-market hours after Barron's reported this weekend that the stock could jump 20% over the next year. The article goes on to suggest that such a level is even possible without the company accepting a merger with rival Glencore International Plc. (OTCMKTS: GLNCY), which it initially rejected in July.
Economic Calendar: Today's economic calendar features a speech by Chicago Federal Reserve Bank President Charles Evans.
Earnings Reports: Stay tuned for earnings reports from Care.com Inc. (Nasdaq: CRCM), ITT Educational Services Inc. (NYSE: ESI), Eleven Biotherapeutics Inc. (Nasdaq: EBIO), ShoreTel Inc. (Nasdaq: SHOR), Omnicom Group Inc. (NYSE: OMC)
Full U.S. Economic Calendar October 13, 2014
Chicago Federal Reserve Bank President Charles Evans speaks 12:30 p.m.
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.