Start the conversation
Stock market news today, October 22, 2014: Good morning. Stock market futures today (Wednesday) indicate the Dow Jones opening one point lower than yesterday's close. The Dow Jones jumped more than 1% Tuesday, adding 215 points. The Nasdaq soared more than 2% on the day, buoyed by Apple Inc.'s (Nasdaq: AAPL) strong earnings report. The Dow Jones rose on stronger corporate earnings and speculation that the European Central Bank may soon introduce new stimulus measures to beat back concerns about growth in the region. The S&P 500 Volatility Index (VIX) dipped another 11% on the day. This is the first time ever that the VIX has dropped more than 10% in three consecutive trading sessions.
The most important number to watch today – besides the Dow – is the September update to the Consumer Price Index, set to report at 8:30 this morning. The CPI is an important indicator that offers the Federal Reserve direction on how to manage monetary policy. The CPI slipped 0.2% in August, its first decline since the fall of 2012. The August figure was lower than expected and allowed Fed doves to remain loose with monetary policy and keep rates down. With declining energy and food prices, consensus expectations are for the CPI to be flat for September. Less food and energy, the CPI is expected to tick north just 0.1%.
Here's what else you should know to make your Wednesday profitable:
- Oil Prices Today: Oil prices were up again this morning. Brent crude, the global benchmark priced in London, was up 0.8% to reach just below $87 per barrel. Meanwhile, WTI crude, which is priced at the NYMEX in Manhattan, was up nearly 0.5% and just a notch below $83 per barrel. Many anticipate that WTI prices will tick north and narrow the gap on Brent crude prices when the U.S. dramatically increases crude exports. And our energy expert, Dr. Kent Moors, predicts that a surge in U.S. crude exports is coming very soon, and you can profit from it.
- Tech Turnout: Shares of Yahoo Inc! (Nasdaq: YHOO) were up 4.5% in pre-market hours. The stock got a boost in after-market trading following an earnings report that beat analyst estimates. Yahoo! earned an adjusted $0.52 per share, besting analyst expectations of $0.33 per share. The earnings were fueled by the company's massive gain provided by the Alibaba Group Holding Ltd. (NYSE: BABA) IPO in September. For a full recap of Yahoo's earnings, be sure to click here. Shares of Alibaba were back within range of its IPO opening of $92 in pre-market hours, gaining another 3% yesterday.
- Printer Problems: Shares of Xerox Inc. (NYSE: XRX) jumped more than 1% in pre-market hours after the company topped Q3 earnings estimates but also reported a 2% decline in quarterly revenues. The services and tech giant reported an adjusted earnings-per-share level of $0.27, besting expectations by a penny. The firm blamed its revenue decline on falling demand in its printing business. Still, shares of Xerox were up more than 4% during yesterday's regular trading hours and are up more than 10% year to date.
- Electric Slump: Shares of Tesla Motors Co. (Nasdaq: TSLA) slipped nearly 1% in pre-market hours on news that shareholder Daimler AG (USA) (OTCMKTS: DDAIF) sold its position in the company. Daimler sold its 4% stake in Tesla for $780 million. Shares of Daimler were up more than 1.1% yesterday.
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.