Good morning! U.S. stock futures for Tuesday, Nov. 25, forecasted a 41-point increase from yesterday's close. The Dow and the S&P 500 again hit new records on a fresh round of mergers and acquisitions and news that central banks around the world are prepared to introduce new stimulus measures.
Today, the markets will pay attention to a surprise second reading of third-quarter GDP and September readings for the FHFA house price index and Case-Shiller home price index. The morning, third-quarter GDP was revised upward to 3.9%, far stronger than analysts predicted. Consensus expectations for the GDP report call for a small downward revision to the first report of 3.5% growth.
Here's what else you should know about the stock market today - including your "Money Morning Tip of the Day" - to make it a profitable Tuesday:
- Merger Mania: It looks like Twitter Inc. (Nasdaq: TWTR) has an acquisition target in sight, and a company leader nearly spilled the beans. Anthony Noto, the social media giant's new chief financial officer may have tweeted a message about a pending acquisition, writing that they should purchase an unnamed firm and detailing a timeline for possible negotiations. The tweet has been deleted. Still, Twitter shares have been under pressure on news that the company sees 2015 as a year of significant growth through acquisition.
- Data Breach: Home retailer The Home Depot Inc. (NYSE: HD) will face 44 civil lawsuits in the United States and Canada over the massive data breach that left consumer information vulnerable. According to a filing, more than 53 million customers had their emails stolen in a cyber-attack and more than 56 million credit cards were compromised. The company has overhauled how it handles consumer information and will soon deploy chip-and-PIN technology to ensure greater protection of sensitive data.
- Downgrade Blues: Shares of Pandora Media Inc. (NYSE: P) slipped 4.3% in premarket hours on news that the online music streaming company received a downgrade from FBR & Co. (Nasdaq: FBRC). Analysts cited increasing risk of "debilitating cost structures," that could cut deeply into margins in the years ahead.
- Selling Off: Reuters reports that German drug-maker Bayer AG (ADR) (OTC: BAYRY) will likely attempt to sell off its diabetes device business. The company is currently overhauling its corporate strategy to increase its emphasis on higher margins in the healthcare sector. According to the report, the company is planning to free up cash for new acquisitions in the crop protection, veterinary, and healthcare sectors. While Bayer continues to make moves in the healthcare sector, investors would be better off paying attention to significant opportunities in the biotech sectors. And Money Morning Executive Editor Bill Patalon offers two biotech stocks poised to profit on one powerful catalyst.
- Oil Prices Today: Oil prices ticked upward on Tuesday morning, as nuclear talks between the United States and Iran have been delayed for another seven months. December futures for U.S. crude, priced at the NYMEX in New York City, increased by 0.5% to hit $76.21. Meanwhile, Brent crude, priced in London, increased nearly 0.7% to hit $80.23. Prices have been on the rise ahead of an important OPEC meeting on Thursday, when the global oil cartel may slash production by up to 600,000 barrels.
- Earnings Reports: Stay tuned for earnings reports from Big Lots Inc. (NYSE: BIG), Campbell Soup Co. (NYSE: CPB), Tiffany & Co. (NYSE: TIF), Hewlett-Packard Co. (NYSE: HPQ), Chico's FAS Inc. (NYSE: CHS)
- Economic Calendar: Today's economic calendar features an update to third-quarter GDP, the Richmond Fed Manufacturing Index, a report on corporate profits, and the State Street Investor Confidence Index.
Full U.S. Economic Calendar
- ICSC-Goldman Store Sales at 7:45 a.m.
- GDP at 8:30 a.m.
- Corporate Profits at 8:30 a.m.
- Redbook at 8:55 a.m.
- FHFA House Price Index at 9 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-Yr FRN Auction at 11:30 a.m.
- 5-Yr Note Auction at 1 p.m.
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.