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Good morning! Stock market futures today (Monday) indicate a market open 64 points lower than Friday's close. Markets rallied on Friday, but it wasn't enough to offset a very bad week that included multiple triple-digit losses. This morning's downturn was heavily tied to a poor earnings report from tech giant International Business Machines Corp. (NYSE: IBM).
The most important number to watch today – besides the Dow – is in China. Over the weekend, the Chinese central bank announced plans to pump 200 billion yuan ($32.6 billion) into the nation's financial system. With China expected to report a weakening economy when it releases its third-quarter GDP figure on Tuesday, the nation is attempting to boost its growth rate and beat back concerns about a slowing global economy.
Here's what else you should know to make your Monday profitable:
- Oil Prices Today: Oil prices were mixed this morning. November contracts for WTI crude oil sat at $82.80 per barrel, while Brent prices were down nearly 0.5% on the day to hit $85.77. Rising consumer sentiment figures were a boost to oil prices after last week's downturn.
- Bad Beat: Shares of International Business Machines Corp. (NYSE: IBM) were down more than 6% in premarket hours after the tech giant announced a huge miss on quarterly earnings. Total revenues slid to $22.4 billion, down from $23.4 billion in the same quarter last year. On an adjusted basis, IBM earned $3.68 per share, far from the consensus expectations of $4.31. Finally, the company announced that it will pay GlobalFoundries $1.5 billion to take control of its semiconductor business. IBM had unsuccessfully attempted to sell the unit.
- Another Slash: Shares of SAP SE (NYSE ADR: SAP) were down more than 4% this morning on news that the company slashed its 2014 earnings outlook. The German tech giant did report a 15% increase in quarterly profits, citing strong growth in its cloud-based services. However, a faltering European economy is looming over many large companies in the sector.
- Big Winner: Shares of Halliburton Co. (NYSE: HAL) rose more than 3% this morning on news that the oilfield services provider beat Wall Street quarterly estimates. The company reported earnings of $1.28 per share, besting expectations of $1.19 per share. The company also announced plans to increase its quarterly dividend to $0.18, a jump of 20%.
About the Author
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.