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 MorningTip 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 BarclaysPlc. (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.
Money Morning Tip of the Day: Expect more market volatility this week - and with it some terrific opportunities...
Today's tip comes from Money Morning Chief Investment Strategist Keith Fitz-Gerald:
Friday's jobs report was well-received despite showing lackluster wage growth and a historically low labor participation rate.
The numbers were more cooked than a Christmas goose, but that won't stop traders in their tracks. Nor will it stop the Fed, which is most likely to misread the data in the name of "progress."
So what does this mean for investors now?
Expect a lot of discussion on rates, the potential for an accelerated rate hike, and energy this week as a result.
While you're at it, sharpen your pencils and refine your "Buy" list. The volatility that's going to come with all this usually produces some terrific opportunities.
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.