Futures for the Dow Jones today (Wednesday) forecasted a 12-point gain from yesterday's close as investors continue to monitor international economic events in Greece, China, and Iran.
Stock Market Today: This morning, investors will continue to focus on earnings reports for the June-ending quarter, a speech by U.S. Federal Reserve Chairwoman Janet Yellen, an update on domestic crude oil inventories, and the monthly industrial production report. Investors will be looking for any clues on when the Fed Open Market Committee might raise interest rates.
Greek Tragedy: Although the debt-ridden nation of Greece reached a deal with international creditors early this week, the International Monetary Fund said the country isn't out of the woods just yet. The IMF raised concerns on Tuesday evening about Greece's ability to enforce the promises it has made to execute the bailout. The global agency also said the country must commit to more debt restructuring in order to ensure the $95 billion bailout program will work. It's just another sign that the Grexit is where the country's debt crisis is headed, and there are three ways that you can stay prepared for the next Greek debt crisis. Read about them here.
Oil Outlook:Oil prices declined this morning as traders react to the deal between Iran and Western nations over the former's nuclear energy program. WTI crude futures for August fell 0.8% to hit $52.58 per barrel. Meanwhile, Brent oil prices dipped 1.1% to hit $57.85 per barrel. Prices fell today on news that Iran plans to increase its export capacity when its energy infrastructure is on line. Despite today's price downturn, Money Morning Global Energy Strategist Dr. Kent Moors has explained that Iran's oil industry remains in shambles, and it will be some time before they are able to return to the market successfully. You can read his analysis on the impact of the Iran deal here.
Earnings Reports: Companies reporting earnings today include BlackRock Inc. (NYSE: BLK), Cohen & Steers Inc. (NYSE: CNS), Delta Air Lines Inc. (NYSE: DAL), Intel Corp. (Nasdaq: INTC), Kinder Morgan Inc. (NYSE: KMI), PNC Financial Services Group Inc. (NYSE: PNC), and U.S. Bancorp (NYSE: USB).
Pre-Market Movers in the Stock Market Today: CSX, CELG, URBN
Pre-Market Movers No. 1, CSX: Shares of railroad giant CSX Corp. (NYSE: CSX) gained more than 3.2% in pre-market hours on news the company reported stronger than expected net quarterly profits and beat Wall Street expectations. The firm said it registered higher gains thanks to falling energy costs, which offset a decline in its coal volumes. The company maintained a strong earnings outlook for 2015 despite warning about the profitability of its coal business for the balance of 2015.
Pre-Market Movers No. 2,CELG: Shares of Celgene Corp. (Nasdaq: CELG) were up more than 6.6% on news the company hiked its 2015 per-share earnings outlook and announced an offer to purchase Receptos Inc. (Nasdaq: RCPT) for $232 per share. Trading of RCPT shares halted temporarily after hours on Thursday before the news hit Wall Street. Shares of RCPT are up more than 11% this morning.
Pre-Market Movers No. 3, URBN: Shares of Urban Outfitters Inc. (Nasdaq: URBN) were up more than 2.4% this morning on news that investment firm Jeffries upgraded the stock to a "Buy." The analyst said recent worries over the company's stagnant demand have provided investors with an attractive investment opportunity.
Stocks to Watch Today: AMZN, MU, JPM, WFC
Stocks to Watch No. 1, AMZN: Shares of Amazon.com Inc. (Nasdaq: AMZN) hit an all-time intraday high on Tuesday as the company prepares for today's "Prime Day," a massive online sales event to celebrate the company's 20th anniversary. The company promises "more deals" than Black Friday, but it will require individuals to have a Prime account, which costs $99 annually, to access the sale. Chief rival Wal-Mart Stores Inc. (NYSE: WMT) announced its own sales online to compete against Amazon.
Stocks to Watch No. 2, MU: Shares of Micron Technology Inc. (Nasdaq: MU) remain in focus on news that China's Tsinghua Unigroup Ltd. has submitted a $23 billion bid for the company. Tsinghua is China's largest state-owned semiconductor company. However, some critics have issued several concerns about the deal, signaling it could face a number of challenges from Wall Street veterans and Washington bureaucrats alike. Some have said the deal undervalues Micron, while others are worried the U.S. Department of Defense could be affected.
Stocks to Watch No.3, JPM & WFC: The earnings season kicked into gear yesterday with JPMorgan Chase & Co. (NYSE: JPM) and Wells Fargo & Co. (NYSE: WFC) reporting numbers. JPMorgan beat Wall Street consensus earnings estimates in the second quarter by $0.10 per share. The company reported per-share earnings of $1.54 and said its revenue outpaced analyst expectations on stronger than expected growth in its mortgage business and a decline in legal costs. Meanwhile, WFC reported per-share earnings of $1.03, which was in-line with Wall Street expectations.
Today's U.S. Economic Calendar (all times EDT)
MBA Mortgage Applications at 7 a.m.
PPI-Final Demand at 8:30 a.m.
Empire State Manufacturing Survey at 8:30 a.m.
Industrial Production at 9:15 a.m.
Atlanta Fed Business Inflation Expectations at 10 a.m.
Federal Reserve Chairwoman Janet Yellen speaks at 10 a.m.
EIA Petroleum Status Report at 10:30 a.m.
Cleveland Federal Reserve Bank President Loretta Mester speaks at 12:25 p.m.
Beige Book at 2 p.m.
San Francisco Federal Reserve Bank President John Williams speaks at 3 p.m. and 6 p.m.
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.
