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Stock Futures Today
Investors are mixed over whether the central bank will move ahead with a plan to raise interest rates in September. Yellen has hinted that the Federal Reserve is unlikely to take into account problems in the global markets, which include Greece's ongoing debt debacle, Puerto Rico's $72 billion debt dilemma, Canada's slump into a recession, Australia's currency woes linked to cratering commodity prices, or China's potential stock market crash.
Yellen has cited strength in the U.S. economy and an improving jobs market as rational for small hikes this year.
On Tuesday, the DJIA surged more than 189 points after Chinese stocks stabilized and investors turned their attention to the FOMC meeting, which began yesterday. The markets broke a five-session losing streak.
Top News in the Stock Market Today
- The Stock Market Today: At 2 p.m., the Federal Open Market Committee meeting concludes. Investors anticipate that the central bank will raise interest rates in the coming months, as Federal Reserve Chairwoman Janet Yellen failed to either rule out a September rate hike during recent Congressional testimony or hint that the central bank was poised to tighten monetary policy.
- Oil Outlook: Oil prices are on their longest losing streak of the year, fueled by oversupply concerns, worries about the Chinese economy, and mixed expectations about the Federal Reserve's pending policy decision. WTI crude futures for September fell more than 1% to hit $47.52 per barrel. Meanwhile, Brent oil prices slipped 0.6% to hit $52.97 per barrel. The U.S. Energy Information Administration will report its weekly supply figures later this morning.
- Earnings Reports: Companies reporting earnings today include Baxter International Inc. (NYSE: BAX), Callaway Golf Co. (NYSE: ELY), Carlyle Group LP (Nasdaq: CG), Cheniere Energy Inc. (NYSEMKT: LNG), Facebook Inc. (Nasdaq: FB), Hilton Worldwide Holdings Inc. (NYSE: HLT), Humana Inc. (NYSE: HUM), MasterCard Inc. (NYSE: MA), and Whole Foods Market Inc. (Nasdaq: WFM).
Pre-Market Movers in the Stock Market Today: TWTR, GILD, CYT, SVYSF
- Pre-Market Movers No. 1, TWTR: Shares of Twitter Inc. (NYSE: TWTR) fell nearly 12% this morning on news that the company reported underwhelming user growth and revenue gains of 61%. The company reported a smaller second-quarter loss compared to year ago, and would have beat Wall Street's Twitter earnings estimates for Q2 2015 had they excluded certain expenses. Here's a breakdown of Twitter's earnings report in 140 characters.
- Pre-Market Movers No. 2, GILD: Shares of Gilead Sciences Inc. (Nasdaq: GILD) jumped more than 3.6% in pre-market trading after the company beat Wall Street second-quarter earnings expectations and hiked its 2015 sales outlook by $1 billion. The company's per-share earnings of $3.15 easily beat analyst expectations of $2.71. The firm cited strong sales of its hepatitis C medications for its quarterly performance.
- Pre-Market Movers No. 3, CYT: Shares of Cytec Industries Inc. (NYSE: CYT) were up more than 27% this morning on news that the aerospace and automotive firm will be purchased for roughly $5.5 billion by Belgian chemical firm Solvay SA (OTC: SVYSF). Cytec investors may be disappointed by the deal, however, as reports indicate that Cytec could be worth more than $6.4 billion by the firm acquiring it.
Stocks to Watch Today: PG, MSFT, CVX
- Stocks to Watch No. 1, PG: Shares of Procter & Gamble Co. (NYSE: PG) are in focus this morning after The Wall Street Journal reported the company's directors announced plans to replace CEO A.G. Lafley with a company insider. The firm said that David Taylor will assume the role on Nov. 1, while Lafley takes over as executive chairman of the board.
- Stocks to Watch No. 2, MSFT: Software giant Microsoft Corp. (Nasdaq: MSFT) will release the long-awaited new version of Windows 10 today. Investors hope that this new iteration of the operating system will spur some life into the firm's bottom line after a very disappointing earnings report in which the firm reported its worst quarterly loss in its history.
- Stocks to Watch No. 3, CVX: Shares of Chevron Corp. (NYSE: CVX) are in focus today after the multinational oil giant announced plans to slash 1,500 jobs, or 2% of its workforce, in order to reduce costs in the face of falling oil prices. Shares were up marginally this morning, but the company's stock hovers near 52-week lows.
Today's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- Pending Home Sales Index at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 2-Year FRN Note Auction at 11:30 a.m.
- 5-Year Note Auction at 1 p.m.
- FOMC Meeting Announcement at 2 p.m.
What Investors Must Know This Week
- The Top Three High-Return Investments to Buy Today
- Is Netflix Stock a Buy After Stock Split and Earnings Beat?
- The Real Impact of the Iran Nuclear Deal on U.S. Oil Prices
Stay informed on what's going on in the markets by following us on Twitter @moneymorning.
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.