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The Dow Jones slipped 95 points yesterday as concerns over Greek debt and the Chinese economy offset optimism about an improving energy sector. China's export levels slipped 3.3% from a year ago, while its imports dropped a staggering 19.9%.
What to Watch Today: Investors will keep their eyes on numerous earnings reports, and the continued drama in Greece. Yesterday, Greece's Prime Minister Alexis Tsipras said his nation will not consider any extension of its bailout terms. He will also maintain his campaign promises to reverse imposed terms on his country. European Commission President Jean-Claude Juncker said today the European Union is unlikely to agree to any of Greece's latest demands. Greece has until the end of the week to seek an extension of its bailout terms before it sees any additional funding dry up.
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:
- Keystone Cops: Despite passing both the House of Representatives and the U.S. Senate by a wide margin, a bill that would approve the completion of the Keystone XL pipeline will face a veto from President Barack Obama behind closed doors this week. The veto would be just the third of Obama's presidency. Shares of TransCanada Corp. (USA) (NYSE: TRP) slipped yesterday on the news. Meanwhile, the Canadian province of Alberta is in talks with the state of Alaska about a plan to ship oil-sands crude through the U.S. state to the Pacific where it can be exported abroad. The pipeline would require the same State Department approval President Obama claims the Keystone project requires. However, its approval would be likely given the lack of political attention it would receive.
- Banks Behaving Badly: The U.S. Department of Justice wants several large banks to plead guilty to criminal charges that they manipulated the foreign currencies' (ForEx) market. In a reversal of business-as-usual, federal prosecutors told banks Barclays Plc. (NYSE: BCS), JPMorgan Chase & Co. (NYSE: JPM), the Royal Bank of Scotland Group Plc. (NYSE: RBS), and Citigroup Inc. (NYSE: C) they must enter guilty pleas if they want to settle cases. Otherwise, the U.S. government could take them to court.
- Stocks to Watch: Shares of Aeropostale Inc. (NYSE: ARO) soared roughly 23% in post-market hours yesterday after the company narrowed its fourth-quarter loss estimates. The company bumped its loss forecast from $0.01 to $0.06 per share. This is an increase from the previous per-share loss estimate of $0.25 to $0.31. The company also announced that it has named its CFO Marc Miller as the company's chief operating officer.
- Cheaters Beware: Shares of Apple Inc. (Nasdaq: AAPL) are up marginally in pre-market trading despite unsettling news. With the release of the Apple Watch expected in the coming months, a number of universities are banning smart watches in order to deter cheaters from accessing information during exams.
- Oil Prices Today: This morning, the IEA warned energy reserves may hit an all-time high this year. The news sent domestic oil prices down sharply. Today, March 2015 futures for WTI oil fell 1.2% to hit $52.24 per barrel. Meanwhile, Brent oil jumped to $58.18 per barrel.
Earnings Reports: Today, expect earnings results from CVS Health Corp. (NYSE: CVS), Dean Foods Co. (NYSE: DF), KKR & Co. (NYSE: KKR), LifeLock Inc. (Nasdaq: LOCK), Molson Coors Brewing Co. (NYSE: TAP), Monster Worldwide Inc. (NYSE: MWW), Spirit Airlines Inc. (Nasdaq: SAVE), and Zillow Inc. (NYSE: Z).
Full U.S. Economic Calendar Feb. 10, 2015
- Richmond Federal Reserve Bank President Jeffrey Lacker speaks at 8:20 a.m.
- Redbook at 8:55 a.m.
- NFIB Small Business Optimism Index at 9 a.m.
- JOLTS at 10 a.m.
- Wholesale Trade at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 3-Yr Note Auction at 1 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.