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Good morning! Futures indicate the stock market today will rise from yesterday's close. On Monday, the Dow Jones finished at another record high, adding 39 points, as markets jumped on strong performances in the industrial sector. The S&P 500 Volatility Index (VIX) – the market's volatility gauge – dipped nearly 3.5%.
What to watch today: Investors should get an announcement from e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA). The company just concluded sales on Chinese Singles' Day. 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 $5.7 billion in transactions on Singles' Day, crushing the $1.7 billion in sales during American online shopping event Cyber Monday. Yesterday, the company registered $2 billion in sales in its first hour of the shopping holiday. The firm is attempting to take Singles' Day beyond China's borders and make it an international event, one that would be highly profitable to the firm. Alibaba stock is up 21% in the last five trading days.
Here's what else you should know – including your "Money Morning Tip of the Day" – to make your Tuesday profitable:
- Changing Plans: There's bad news this morning for anyone planning to check their email on a flight. Telecom giant AT&T Inc. (NYSE: T) announced it will scrap its project to launch high-speed internet on airplanes as the company aims to expand its international presence. The firm is also preparing for its merger with DIRECTV (Nasdaq: DTV). On Friday, the company announced the $1.7 billion acquisition of Mexican telecom operator Iusacell, a signal of the firm's goal of building its international portfolio.
- Net Neutrality on Tap: Online providers slumped Monday after President Obama called for the FCC to introduce Net Neutrality regulations to balance traffic on the Internet. Shares of Comcast Corp. (Nasdaq: CMCSA) slipped nearly 5% on news that the U.S. government was aiming to introduce new regulations on Internet traffic. The president is pushing for the FCC to regulate Internet companies the same way that it regulates public utilities. Shares of content providers like Netflix Inc. (Nasdaq: NFLX) were largely unchanged.
- Solar Slump: Optimism for the renewable energy sector continues to wane after the midterm election, but solar companies aren't instilling much confidence with their earnings reports. Yesterday, the number two solar installation company Vivint Solar Inc. (Nasdaq: VSLR) saw its shares drop more than 15% after the company sorely missed earnings expectations. The company reported a per-share loss of $0.66, significantly down from Wall Street's call for a loss of $0.20.
- The Assault Begins: Reuters reports that Apple Inc. (Nasdaq: AAPL) has hired a dedicated sales force that will help it expand into corporate sales. According to the report, the firm is attempting to expand into the corporate sector as it continues to see weakness in iPad sales in the consumer sector. Shares of Apple stock were down marginally in pre-market hours.
- Oil Prices Today: Crude prices fell again on Monday despite rising geopolitical tensions in Ukraine. December futures of WTI crude, priced in New York City, slipped below $78 per barrel. Meanwhile, Brent prices, the global benchmark priced in London dropped more than $1 per barrel to settle at $82.34.
- Earnings Reports: Stay tuned for earnings reports from D.R. Horton Inc. (NYSE: DHI), Aecom Technology Corp. (NYSE: ACM), and CST Brands. Inc. (NYSE: CST).
Full U.S. Economic Calendar November 11, 2014
- Today, the stocks and futures markets are both open, while the bonds market is closed.
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.