Good morning! Stock market futures indicate a market open higher than yesterday's close. The markets are waiting for the beginning of the Fed Open Market Committee to begin its two-day meeting. After the recent market slip - down 6.8% in less than one month - the big question this week is will the Fed extend QE3?
The most important number to watch today - besides the Dow - is the earnings report from social networking giant, Facebook Inc. (Nasdaq: FB). Mark Zuckerberg's company will report third-quarter earnings after the market closes at 4 p.m. The important figures from the earnings report will center on the social media giant's results from its mobile business. Facebook has been shifting its business focus to mobile apps and devices from laptop and desktop computers.
Here's what else you should know - including your Tip of the Day - to make your Tuesday profitable:
- Dividend Hikes: Multi-national energy giant BP Plc. (NYSE ADR: BP) is under heat after a new report indicates that the Deep Water Horizon spill of 2010 left a Rhode-Island-sized ring of oil on the floor of the Gulf of Mexico. But that didn't stop the company from hiking its dividend to $0.10 per share after posting overall profits that were in-line with Wall Street expectations. BP Plc. is yet another company to increase its dividend payout for interest-seeking investors. Click here to see a list of 35 companies that increased their dividends within the last week.
- Mum on Mergers: Shares of Pfizer Inc. (NYSE: PFE) were up more than 1% this morning on news that the company bested third-quarter earnings expectations. The pharmaceutical giant reported per-share earnings of $0.42, beating analyst estimates by $0.03. The company cited growth in sales of its cancer treatments and cited increased demand in emerging markets. However, the company remained mum on any pending mergers or acquisitions. The company tried multiple times and failed to purchase its U.K. rival AstraZeneca Plc. (NYSE ADR: AZN).
- Twitter Troubles: After the bell yesterday, shares of Twitter Inc. (Nasdaq: TWTR) plunged more than 13%. The company reported that its quarterly revenue figures beat Wall Street estimates. However, the company said that its fourth-quarter sales may not meet street expectations, and it reported that its user growth rate declined for another quarter.
- Tesla Tanks: Shares of Tesla Motors Inc. (Nasdaq: TSLA) dropped more than 5.5% on Monday on a report from WardsAuto.com that sales had fallen 26% in nine months. The news shook CEO Elon Musk so much that he took to Twitter to call the report false. Musk wrote that sales for Tesla in the U.S. were up 65% year over year in September. Tesla stock is up more than 3% in pre-market hours.
- Elections on Tap: We are just one week away from critical midterm elections in the United States. Right now, most election forecasters see the Republicans taking control of the Senate from the Democrats. They also predict the GOP will hold or expand its majority in the House of Representatives. Such a result should bring at least a modest U.S. stock market rally, says Money Morning Chief Investment Strategist Keith Fitz-Gerald, a seasoned market analyst with 33 years of experience. For a recap of Keith's thoughts on next Tuesday's election, be sure to watch right here.
- Oil Prices Today: The dollar dropped yesterday on slow growth in the U.S. services sector. That provided support for global oil prices amid ongoing concerns about a glut of supply and weak demand after yesterday's report from Goldman Sachs Group Inc. (NYSE: GS). Brent crude, the global benchmark priced in London, was up above $86 this morning. Meanwhile, WTI crude, priced in Manhattan, was up 0.7%, hovering just above $81.50.
- Economic Calendar: Today's economic calendar features the Richmond Fed Manufacturing Index, the S&P Case-Shiller HPI, and a September update on Durable Goods Orders.
- Earnings Reports: Stay tuned for earnings reports from Aetna Inc. (NYSE: AET), Aflac Inc. (NYSE: AFL), Cabot Corp. (NYSE: CBT), Coach Inc. (NYSE: COH), Electronic Arts Inc. (Nasdaq: EA), Facebook Inc. (NYSE: FB), Freeport-McMoRan Inc. (NYSE: FCX), Marriott International Inc. (NYSE: MAR), Noble Energy Inc. (NYSE: NBL), Panera Bread Co. (Nadsaq: PNRA), Pfizer Inc. (NYSE: PFE), and United States Steel Corp. (NYSE: X)
Full U.S. Economic Calendar October 28, 2014
- ICSC-Goldman Store Sales at 7:45 a.m.
- Durable Goods Orders at 8:30 a.m.
- Redbook at 8:55 a.m.
- S&P Case-Shiller HPI at 9 a.m.
- Consumer Confidence at 10 a.m.
- Richmond Fed Manufacturing Index at 10 a.m.
- State Street Investor Confidence Index at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 2-Year Note Auction at 1 p.m.
Money Morning Tip of the Day: One of the greatest tech companies in America is facing an ebbing tide in its relevance. That's what Michael E. Lewitt explains in a can't-miss editorial on one of America's most iconic brands. And if you're an investor in this stock, you're going to need to hear the truth about why Warren Buffett may walk away from this company very soon.
About the Author
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.