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Good morning! Stock market futures today forecast a rise from Friday's close. On Friday, the Dow Jones finished at another record high, adding 19 points. The S&P 500 Volatility Index (VIX) – the market's volatility gauge – dipped another 4%.
What to watch today: Momentum for shares of e-commerce giant Alibaba Holding Group Ltd. (NYSE: BABA) is today's biggest story. Tomorrow is "Singles' Day" in China. The holiday, which was created to celebrate or lament being single in China, is the largest 24-hour online shopping event in the world. In 2013, Alibaba processed a record $5.8 billion in transactions on Singles' Day, crushing the $1.6 billion in sales during American online shopping event Cyber Monday. BABA stock is up more than 2% in pre-market hours on speculation that the company will shatter its previous record.
Here's what else you should know – including your "Money Morning Tip of the Day" – to make your Monday profitable:
- Ending Too Big to Fail: In an effort to end "Too Big to Fail," international regulators have proposed new rules to prevent structural failure in the financial sector. According to reports, Mark Carney, the governor of the Bank of England and the head of the Financial Stability Board has introduced a bond-to-equity swap program that would buffer against futures crises.
- Gas Deal Approved: The Russian and Chinese governments have announced another large-scale gas supply agreement. The $400 billion deal will see Russia supply another 30 billion cubic meters of gas each year. It also reinforces trade and political ties between the two Eastern nations. The deal is reminiscent of the other $400 billion supply deal that our energy expert Dr. Kent Moors covered in May.
- Freedom Movement: In a stunning simulated referendum on Sunday, more than 81% of voters in Catalonia (a province of Spain) said they wanted autonomy from their government. Despite the desire for independence, a justice minister in Madrid said the vote is not democratically valid. Therefore the government will not recognize the vote. The Spanish economy continues to struggle, with an "official" unemployment rate of 26.6% in October.
- Recall Woes: In a story that raises new concerns about General Motors Co.'s (NYSE: GM) commitment to public safety, The Wall Street Journal reports the auto giant ordered nearly 500,000 replacement parts to fix Chevy Cobalts two months before it informed regulators about the problem. The issue with GM ignition switches has been tied to at least 30 deaths. The Journal cited emails between GM and its suppliers.
- No Deal: Flight attendants from American Airlines Group Inc. (Nasdaq: AAL) rejected a five-year contract that will force the airline and its employees into arbitration. The contract, which would have been the first since the company's merger with US Airways, missed acceptance by just 16 votes out of more than 16,000. The binding arbitration meeting is set for Dec. 3. Shares of American Airlines were down more than 1.5% in pre-market hours.
Oil Prices Today: Crude prices have endured their longest weekly loss streak since 1998. Crude prices were back on the rise this morning as geopolitical tensions rose again in Ukraine after Russia troops entered the nation again. December futures of WTI crude, priced in New York City, rose nearly 1.2% to hit $79.60. Meanwhile, Brent prices, the global benchmark priced in London were up nearly 1.7%, ticking back toward $85 per barrel.
- Economic Calendar: Today's economic calendar features the TD Ameritrade IMX and a speech from Boston Federal Reserve Bank President Eric Rosengren.
- Earnings Reports: Stay tuned for earnings reports from Whitewave Foods Co. (NYSE: WWAV), Rayonier Inc. (NYSE: RYN), 3D Systems Corp. (NYSE: DDD), Sotheby's (NYSE: BID), EV Energy Partners LP (Nasdaq: EVEP), Dean Foods Co. (NYSE: DF), and Inovio Pharmaceuticals Inc. (Nasdaq: INO)
Full U.S. Economic Calendar Nov. 10, 2014
- 4-Week Bill Announcement at 11 a.m.
- 3-Month Bill Auction at 11:30 a.m.
- 6-Month Bill Auction at 11:30 a.m.
- TD Ameritrade IMX at 12:30 p.m.
- 3-Yr Note Auction at 1 p.m.
- Federal Reserve President Eric Rosengren speaks at 5:10 p.m.
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.