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Stock market futures for Wednesday, Jan. 14, forecasted a 23-point decline against yesterday's close. The Dow Jones rallied nearly 300 points in early trading hours on Tuesday before reversing and finishing down 27 points. The downturn was fueled by Brent crude prices falling another 1% on the day. Crude oil prices are down nearly 15% over the last two weeks.
Today, investors will react to earnings reports from banking giants Wells Fargo & Co. (NYSE: WFC), JPMorgan Chase & Co. (NYSE: JPM). It's also important to pay attention to reaction from the World Bank's global growth outlook from yesterday. The D.C.-based institution argues that the U.S. economy's recovery and falling oil prices will not be able to offset concerns in Europe, China, and South America. The World Bank says that the global economy will grow 3% a year, a decrease from previous estimates of 3.4%
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 Wednesday:
- Stocks to Watch: Shares of Tesla Motors Inc. (Nasdaq: TSLA) were down this morning on news that the company's sales in China have underperformed due to customer misconceptions over charging requirements. Said CEO Elon Musk: "We had very high sales in the rest of the world, but not China." The firm also announced plans to increase its production of electric cars to "at least a few million a year" by 2025, according to Musk. The company produced roughly 40,000 vehicles in 2014. Despite the boost to production, Musk told an audience in Detroit that the company may not turn a profit until 2020. Shares of Tesla were down more than 9% in pre-market hours.
- Suing Surge: Shares of Apple stock (Nasdaq: AAPL) were up marginally in pre-market hours this morning on news that the company has sued Ericsson (Nasdaq ADR: ERIC). Apple has demanded that the Swedish tech firm reduce its royalty rates for its patents.
- Dot-Com Boom: According to Bloomberg, Etsy Inc. may initiate an initial public offering in 2015. The report indicates that the firm could end up being the largest New York-based listing since 1999. The firm, which operates an online marketplace for crafts and vintage goods, may seek to raise $300 million.
- Gaming Gains: Shares of GameStop Corp. (NYSE: GME) slipped nearly 3% on news that the company's same-store sales slipped 3.1% over a nine-week period ending Jan. 3. Despite the downdraft, the firm announced that new software sales increased by 5.8%, boosted by a massive 94.4% jump in Xbox and PS4 software.
- Oil Prices Today: Oil prices fell more than 1% this morning after prices hit their lowest levels in nearly six years. This morning, February 2015 futures for U.S. crude, priced at the NYMEX in New York City, decreased by nearly 1.3% to hit $45.67 per barrel. Meanwhile, Brent crude, priced in London, dropped more than 0.3% to hit $46.67 per barrel.
- Earnings Reports: Stay tuned for an earnings report from Wells Fargo & Co. (NYSE: WFC), JPMorgan Chase & Co. (NYSE: JPM), Greif Inc. (NYSE: GEF), and HB Fuller Co. (NYSE: FUL).
- Economic Calendar: Today's economic calendar features the weekly EIA petroleum status report, an update on business inventories, the Beige Book, and a monthly report on import and export prices.
Full U.S. Economic Calendar
- MBA Purchase Applications at 7 a.m.
- Retail Sales at 8:30 a.m.
- Import and Export Prices at 8:30 a.m.
- Atlanta Fed Business Inflation Expectations at 10 a.m.
- Business Inventories at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 30-Yr Bond Auction at 1 p.m.
- Beige Book at 2 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.