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Good morning! Right now futures indicate the stock market today opening higher than yesterday's close. The Dow added 19 points yesterday, but the market reacted negatively to a poor earnings report issued by International Business Machines Corp. (NYSE: IBM). According to reports, investment guru Warren Buffett and his Berkshire Hathaway Inc. (NYSE: BRK.A) lost nearly $1 billion after IBM shares sunk by more than 7% yesterday.
The most important numbers to watch today – besides the Dow – are China's third-quarter GDP rate and the report on existing home sales for September. This morning, the National Bureau of Statistics reported that China showed a 7.3% year-over-year quarterly growth rate in the third quarter. This is the lowest GDP growth rate in five years as the nation continues to face weakening production and real estate levels. The announcement will likely fuel Chinese central bankers to add more stimulus measures to stave off a continued slowdown.
Meanwhile, existing home sales slipped 1.8% in August. This year, existing home sales are down 5.3% year on year. With Friday's positive report on new home sales and housing starts, but relative weakness in home prices, this report will be an important barometer on the continued health of the U.S. housing market.
Here's what else you should know to make your Tuesday profitable:
- Oil Prices Today: Oil prices were back on the rise this morning, with Brent crude, the global benchmark, rising nearly 0.3% on increasing Chinese demand. November contracts for WTI crude were up nearly 0.2% as well, but trailed Brent by roughly $3 per barrel. The price of WTI was flat on Monday, finishing at $82.71 per barrel. With oil prices still suppressed, our energy expert Dr. Kent Moors offers three takeaways for the U.S. energy sector right now. And his 35 years of expert advice give him the foresight to provide one play that you can take right now while others are too distracted by figures in China or European growth concerns.
- AAPL Report: Shares of Apple Inc. (Nasdaq: AAPL) rallied more than 1% in post-market hours after the company crushed Wall Street earnings expectations on strong sales of the new iPhone 6 and 6 Plus models. Apple reported earnings of $1.42 per share, above analyst expectations of $1.31. The figures were a 20% increase over the $1.18 EPS in the same quarter a year ago. Quarterly revenues were $42.1 billion, beating expectations of $39.74 billion. That was a 12% increase over last year's revenue of $37.5 billion. Here's the full recap of Apple's quarterly report.
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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.