Dow Jones today, October 14, 2014: The Dow Jones Industrial Average dropped 223 points Monday, shedding earlier gains as investors continued to express doubts about the global economy. The S&P 500 Volatility Index (VIX) jumped another 15% on the day. The market's fear index reached 24.64, its highest close since June 2012. The S&P 500 slumped below the 1,900 level ahead. The Index has suffered its worst three-day decline since November 2011.
Despite yesterday's drop, Money Morning Chief Investment Strategist Keith Fitz-Gerald - a seasoned market analyst with 33 years of experience - refuses to join the gloom-and-doom crowd that's now predicting a stock market crash of 20% to 30%. But a 10% stock market correction doesn't concern Keith, either. On the contrary, he relishes that idea.
And here's what else you should know to make your Tuesday profitable:
Oil Prices Today: The price of Brent crude oil, the global benchmark in London, continued to slide this morning to $87.40 per barrel on news that Saudi Arabia told market participants to expect lower prices for an extended period of time. The announcement is putting pressure on WTI prices, which have now fallen to $84.66 per barrel and dragged down shares of shale oil producers in the process. But as our Global Energy Expert Dr. Kent Moors explains, by cutting oil prices rather than export volume, Saudi Arabia has signaled it is now ready for a potentially costly price war... and the stakes couldn't be higher for OPEC.
Gold Prices Today: Novembergold prices continued to climb this morning to $1,237 per ounce on a weakening dollar and increased concerns about global markets.
Earnings Confusion: Shares of JPMorgan Chase & Co. (NYSE: JPM) were down roughly 0.8% this morning after the company narrowly missed third-quarter earnings estimates. Strangely, the company released its earnings report nearly two hours after their results were posted on a third-party website, Shareholder.com. Although the report was removed from the site, a number of other news outlets had already reported the figures, prompting questions about whether the company's financial data could have been compromised. The company reported earnings of $1.36 per share, down marginally from analyst expectations of $1.38 per share, according to Thomson Reuters.
A Lukewarm Debut: In a move that brings the last of the Big Detroit Three automakers back to the New York Stock Exchange, shares of Fiat Chrysler Automobiles NV (NYSE: FCAU) debuted on Monday. During its IPO, Fiat shares opened at $9.00, rose as high as $9.55, and closed at $8.92. The company plans to use this funding to increase its presence in the North American auto markets to offset a mature and stagnating European auto sector. Analysts, however, were not enthusiastic that the world's seventh-largest automaker will be able to attract and sustain investors.
Dividend Aristocrat: While many investors will be focused on earnings in the banking sector today, tech giant Intel Corp. (Nasdaq: INTC) will also be reporting its earnings, with consensus expectations at $0.65 per share. One of the major questions for Intel investors is when and if the semiconductor company will raise its dividend. Intel's dividend has remained unchanged at $0.225 per share for ten straight quarters. Although it's unlikely that Intel will raise its dividend until 2015, be sure to check out this list of 20 dividend-paying stocks that just raised their payouts last week.
Startup Cash: In an effort to fight off rivals in the virtual reality world, Google Inc. (Nasdaq: GOOG, GOOGL) announced plans to invest roughly $500 million in the secretive hardware and software producer Magic Leap. According to a number of reports, including Venture Beat, Magic Leap is secretive, but likely engaged in virtual reality based on its trademark phrase, "Cinematic Reality." The move likely counters Facebook Inc.'s (Nasdaq: FB) $2 billion investment in virtual reality startup Oculus VR Inc. in March.
GM Fallout: The fallout continues for General Motors Co. (NYSE: GM) in the deaths of more than two dozen drivers who perished in accidents caused by faulty mechanical problems. According to a press release on Monday, compensation claims for three more deaths have been approved in the case that holds the auto manufacturer responsible. This brings the total number of deaths linked to faulty ignition switches to 27. In 2014, General Motors has recalled more than 30 million vehicles to address a variety of mechanical problems.
Earnings Reports: Stay tuned for earnings reports from Citigroup Inc. (NYSE: C), SLM Corp. (NYSE: SLM), Wells Fargo & Co. (NYSE: WFC), Johnson & Johnson (NYSE: JNJ), JPMorgan Chase & Co. (NYSE: JPM), Kinder Morgan Energy Partners LP (NYSE: KMP), Intel Corp. (Nasdaq: INTC), and CSX Corp. (NYSE: CSX).
Economic Calendar: Today's economic calendar features NFIB Small Business Optimism Index, the ICSC-Goldman Weekly Store Sales report, and the Fed Redbook.
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.