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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%.