Start the conversation
For Sept. 25, 2015, here's what will move the Dow Jones today…
First, yesterday's closing numbers:
On Thursday, the Dow Jones Industrial Average slipped 78 points ahead of U.S. Federal Reserve Chairwoman Janet Yellen's speech last night on inflation. But that all changed after she spoke…
The Fed chairwoman said there will likely be a fed fund rate increase "later this year, followed by a gradual pace of tightening thereafter." The dollar rallied this morning on Yellen's rate hike comments, putting it on track for its best week in over two months; oil prices, meanwhile, pared gains as the dollar rose.
The Fed has two more meetings this year: Oct. 28 and Dec. 16. The market is suggesting a 20% probability of an October hike and a 47.2% probability of it happening in December.
On a side note, Yellen had small medical emergency during the speech. She ended it early and was seen by an on-site EMT for dehydration. She reportedly felt fine after treatment and continued with her Thursday evening schedule.
Now, Things to Know Today
- Stock futures are on the move this morning on Janet Yellen's comments last night that indicated an interest rate hike in 2015, and ahead of the U.S. Commerce Department's third revision of the Q2 GDP report. Dow futures were up 220 points; Nasdaq futures were up 53 points; and S&P futures were 23.75 points in the green.
- Today, the Commerce Department will announce its third reading of the Q2 GDP report, while the University of Michigan's September report on consumer sentiment offers insight into optimism over the U.S. economy.
- Investors should also pay attention to a speech today by Deutsche Bundesbank (Buba) President Dr. Jens Weidmann, who is also a member of the Governing Council of the European Central Bank. Weidmann is likely going to cover a number of topics, including Europe's exposure to Greece's ongoing debt crisis and pending action by the ECB on interest rates in the wake of the Fed's decision to stay pat last week, and will possibly discuss the impact of the Volkswagen emissions scandal on the German economy. Volkswagen investors – find out what to do about VLKAY stock here.
- Oil prices will be in focus today when the Commerce Department reports the revised GDP report and the University of Michigan announces a report on consumer sentiment. On Thursday, WTI prices finished up on the day by 1.3% after a volatile trading session. Commodity gains were fueled on the back of a report by market intelligence firm Genscape, which suggested an inventory drawdown of roughly 625,000 barrels for the week ending September 22.
- Global industrial giant Caterpillar Inc. (NYSE: CAT) will attempt to recover after its stock hit a five-year low Thursday. The company announced plans to cut at least 5,000 positions by the end of 2016 and up to 10,000 employees over the next few years. It also slashed its 2015 revenue forecast in the face of declining demand from its largest customers in mining and oil production. The announcement raises broader concerns about the global economy as many see Caterpillar stock as an indicator of global demand in industrial production.
- Shares of Nike Inc. (NYSE: NKE) surged more than 4.7% after the company announced strong earnings after the bell on Thursday. The company reported earnings per share (EPS) of $1.34 on revenue of $8.4 billion. Wall Street analysts had expected earnings of $1.19 per share on revenue of $8.22 billion. Notably, Nike sales in China climbed 30% compared to 2014.
- Plans of ABB Ltd. (NYSE ADR: ABB), one of the largest engineering companies in the world, will be important for investors to watch. As Money Morning Resource Specialist Peter Krauth explains, the company will be central to one of the largest megaprojects every attempted: The China Silk Road Expansion Project. This project could create the sort of profits that make ABB shares explode – read the full story here.
- Shares of Blackberry Ltd. (Nasdaq: BBRY) will be in focus when the Canadian mobile giant announces fiscal second-quarter earnings. Estimize projects that the company will report an EPS loss of $0.05 on revenue of $613.8 million. Meanwhile, Wall Street expects an EPS loss of $0.07 on revenue of $610.4 million.
- Apparel giant Finish Line Inc. (Nasdaq: FINL) will announce second-quarter earnings after the bell on Friday. The company is expected to report an EPS of $0.58 on revenue of $492.1 million, according to Estimize. Wall Street expects that the company's EPS will be $0.57 on slightly lower revenue of $491.3 million.
- Shares of Pier 1 Imports Inc. (NYSE: PIR) cratered more 11% post-closing bell Thursday after the company reported weaker than expected quarterly earnings and slashed forward guidance.
Today's U.S. Economic Calendar (all times EDT)
- GDP at 8:30 a.m.
- Corporate Profits at 8:30 a.m.
- James Bullard Speaks at 9:15 a.m.
- PMI Services Flash at 9:45 a.m.
- Consumer Sentiment at 10 a.m.
- Baker-Hughes Rig Count at 1 p.m.
- Esther George speaks at 1:25 p.m.
Top Profit Opportunities
- $200 Trillion Debt Bubble to Spark Massive Sell-Off
- Cash In on a Strong Dollar and Weak Stocks
- How to Double Your Money: A Step-by-Step Guide
Follow 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.