Dow Jones Industrial Average Could Move Higher Today on This Data, Yellen Speech

For Sept. 30, 2015, here's what could boost the Dow Jones Industrial Average today...

Dow Jones Today

Dow Jones Industrial Average todayDow futures for Wednesday are up 181 points as traders prepare for an important update on U.S. oil inventory levels and stocks react to a monthly economic report from Canada and updates on Japan's struggling manufacturing sector.

In addition, U.S. Federal Reserve Chairwoman Janet Yellen will give a speech this afternoon in St. Louis. Investors will be looking for further clues on the timing of the Federal Reserve's next rate increase.

On Tuesday, the Dow Jones Industrial Average gained more than 47 points despite growing concerns about global growth.

Healthcare stocks faded in the later hours of the trading session and extended the sector's downturn to eight straight days.

It was another brutal day for biotech stocks. Shares of Seres Therapeutics Inc. (Nasdaq: MCRB) fell by more than 20% on the day, while shares of Galapagos NV (Nasdaq ADR: GLPG) fell by more than 15%. The iShares NASDAQ Biotechnology Index (ETF) (Nasdaq: IBB) was down 0.39% after paring strong gains.

Top News in the Stock Market Today

  • Today, pay attention to the latest monthly GDP report in Canada, as we will get a better sense of whether the U.S.'s largest export market is mired in recession. The country has been hammered by falling oil prices, and its struggling economic performance has weighed on the sentiment of the U.S. Federal Reserve and its timing on interest rates. In addition, Automated Data Processing (ADP) will report private data growth for the month of September at 8:30 a.m.
  • Oil prices are in focus today as investors keep an eye on the weekly inventory report from the U.S. Energy Information Administration. Energy economists anticipate a drawdown of 916,000 barrels from last week, while Estimize analysts project a decline of roughly 1.26 million barrels. Energy stocks slipped by more than 0.4% on Tuesday despite solid gains in WTI oil prices and Brent crude prices. Shares of both Exxon Mobil Corp. (NYSE: XOM) and Chevron Corp. (NYSE: CVX) were down after the bell on Tuesday by more than 0.3% Here's a breakdown on why oil prices rose on Tuesday, but energy stocks slid.

Earnings Reports

  • Pre-Market Movers No. 1, PAYX: Before the market opens, Paychex Inc. (Nasdaq: PAYX) will report fiscal first-quarter earnings. Estimize analysts anticipate that the payment company will report an EPS of $0.51 on revenue of $717.9 million, while Wall Street expects the same earnings level, but revenue slightly lower. Wall Street analysts expect the company to report first quarter revenue of $717.2 million.

Stocks to Watch: YHOO, BABA, AXON, QCOM

  • Stocks to Watch No. 1, YHOO: Shares of Yahoo Inc. (Nasdaq: YHOO) were gaining in post-market hours yesterday after the company announced plans to proceed with the spin-off of its stake in Alibaba Group Holding Inc. (NYSE: BABA). Yahoo stock gained nearly 2.4% on Tuesday, while Alibaba stock gained 0.8%. Here's a breakdown of the tech giant's announcement and insight on how this deal will affect Alibaba stock in the future.
  • Stocks to Watch No. 2, AXON: Shares of Axon Sciences Ltd. (NYSE: AXON) were still on the move in post-market hours after the company continues to see positive momentum following an upgrade from Zacks Research.
  • Stocks to Watch No. 3, QCOM: Shares of Qualcomm Inc. (Nasdaq: QCOM) should be in focus today as the stock is trading at a bargain. As we explain right here, Qualcomm is one of the best stocks to own when looking for exposure to emerging multimillion-dollar markets. Here's a recap of the semiconductor company and insight into why the stock represents one of the best bargain buys in the technology sector today.

Today's U.S. Economic Calendar (all times EDT)

  • MBA Mortgage Applications at 7 a.m.
  • ADP Employment Report at 8:15 a.m.
  • Chicago PMI at 9:45 a.m.
  • EIA Petroleum Status Report at 10:30 a.m.
  • Federal Reserve Chairwoman Janet Yellen speaks at 2 p.m.
  • Federal Reserve Governor Lael Brainard speaks at 7 p.m.

What Investors Must Know This Week

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About the Author

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.

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