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On Wednesday, the Dow Jones rallied 212 points and the S&P 500 returned to the black after five straight losing sessions. Rising oil prices and additional guidance from the Federal Reserve on its rate-hike timing fueled the markets.
What to Watch Today: markets are on the rise as investors show confidence in the U.S. economy ahead of tomorrow's December U.S. jobs report. Yesterday, ADP reported private employers added 241,000 jobs in the United States in December, surpassing consensus expectations of 226,000. This morning, consensus jobless claims for last week are expected to come in around 290,000. Keep an ear out for two speeches from members of the Fed Open Market Committee this afternoon as they discuss the central bank's December FOMC meeting. Boston Reserve Bank President Eric Rosengren and Minneapolis Federal Reserve Bank President Narayana Kocherlakota will speak later today.
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 Thursday:
- GoPro Going Global: Nick Woodman, the CEO of GoPro Inc. (Nasdaq:GPRO), said his company will expand its global distribution network to nations that include China later this year. The company aims to reduce its reliance on the U.S. market and introduce its next-generation cameras to customers around the globe. The Financial Times reports the company experienced a record launch for its new camera, the Hero 4, over the holidays. Woodman also discussed his excitement for other technologies like virtual reality and drone systems. GoPro stock fell 3.7% yesterday, and is down more than 1.5% in pre-market trading.
- Cadillac Woes: Shares of General Motors Co. (NYSE: GM) fell more than 1% in pre-market hours on news that it plans to slash the MSRP of its three top-selling option packages for the 2015 Cadillac CTS. According to Reuters, the firm has raised new concerns about waning demand for the vehicle. The price change could be as high as $3,000. Shares of GM were up 0.6% in pre-market trading.
- Biotech Breakout: Shares of Biogen Idec Inc. (Nasdaq: BIIB) were up more than 4.7% this morning on news the company's treatment anti-LINGO has proven successful. The treatment is designed to reverse optical scarring in multiple sclerosis patients during phase 2 trials. The treatment targets the optic nerve in a condition known as optic neuritis. This would be the first drug to successfully treat the condition.
- Slippery Earnings: Shares of WD-40 Co. (Nasdaq: WDFC) slipped 5.7% after-hours on news the company reported weak fiscal first-quarter earnings. The company's earnings per share came in at $0.73, down from Wall Street consensus estimates of $0.80. The company also revealed that net income in the first quarter slipped 6% year over year.
- Biotech Boom: Shares of Halozyme Therapeutics Inc. (Nasdaq: HALO) continue to climb in pre-market on news that the company sees billion-dollar potential for its cancer drug. The stock climbed more than 24% on Wednesday after the company's CEO said the drug, which is being tested on pancreatic cancer, could one day treat other forms of solid tumor cancers and delay the effects of the deadly disease. The company plans to release the final results from its pancreatic studies in late 2015.
- Oil Prices Today: Oil prices were up marginally this morning as traders continue to search for a bottom in the energy market. Crude oil prices reversed a four-day decline yesterday on news that U.S. reserves fell and that the economy appears to be resilient despite global growth concerns in Europe and Asia. This morning, February 2015 futures for WTI oil were up nearly 0.7% to $49 per barrel. Meanwhile, Brent oil was up more than 0.7% to $51.52 per barrel.
- Earnings Reports: Stay tuned for an earnings report from Bed Bath & Beyond Inc. (Nasdaq: BBBY), Constellation Brands Inc. (NYSE: STZ), Family Dollar Stores Inc. (NYSE: FDO), PriceSmart Inc. (Nasdaq: PSMT), and Ruby Tuesday Inc. (NYSE: RT).
Full U.S. Economic Calendar Jan. 5, 2015
Challenger Job-Cut Report at 7:30 a.m.
- Gallup US Payroll to Population at 8:30 a.m.
- Jobless Claims at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 3-Year Note Announcement at 11 a.m.
- 10-Year Note Announcement at 11 a.m.
- 30-Year Bond Announcement at 11 a.m.
- Boston Reserve Bank President Eric Rosengren speaks at 12 p.m.
- Consumer Credit at 3 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 p.m.
- Minneapolis Federal Reserve Bank President Narayana Kocherlakota speaks at 8:00 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.