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Stock Futures Today
Futures for the Dow Jones Industrial Average today (Wednesday) were up 119 points this morning on growing M&A activity and a fourth-straight day of rising oil prices. No members of the U.S. Federal Reserve will be speaking today, which puts an increased focus on the released of the minutes from September’s FOMC meeting.
Yesterday, the Dow Jones Industrial Average added 13 points as shares of DuPont Co. (NYSE: DD) led the gains. Shares of DuPont surged more than 7.6% on news the company's chairwoman and CEO Ella Kullman will retire in October. The announcement comes after a long battle against activist investor Nelson Peltz and his hedge fund Trian Fund Management LP. Meanwhile, investors added more caution after the International Monetary Fund slashed its 2015 growth forecast to 3.1% on concerns related to falling oil prices and China's slowing economy. The Nasdaq slipped a little less than 1% on the day.
Top News in the Stock Market Today
- The Stock Market Today: A light economic calendar will place a greater emphasis on companies reporting earnings on Wednesday. The important data will come from Europe, where the United Kingdom provides a critical manufacturing production report.
- Oil Outlook: Oil prices were pushing higher this morning as speculation about tightening supplies in the U.S. and news that Russia plans to meet with OPEC over the recent low price environment. This morning, WTI prices added another 2.0% to hit $49.52 per barrel. Meanwhile, Brent crude prices were up 1.9% to $52.90, their highest levels in nearly two months. Later this afternoon, the U.S. Energy Information Administration will report weekly oil inventories.
Earnings Outlook: MON, STZ, GPN, AYI
- Earnings Reports No. 1, MON: Before the market opens, seed giant Monsanto Co. (NYSE: MON) will report fiscal fourth-quarter earnings. Estimize analysts predict the company will report an earnings per share of $0.05 on revenue of $2.895 billion. Meanwhile, Wall Street analysts expect flat earnings on revenue of $2.889 million.
- Earnings Reports No. 2, STZ: Before the bell, Constellation Brands Inc. (NYSE: STZ) will report earnings. Estimize expects the beverage maker to report per-share earnings of $1.33 on revenue of $1.728 billion. Wall Street consensus earnings estimates are set at $1.31 per share on top of $1.727 billion in revenue.
- Additional companies reporting earnings include Global Payments Inc. (NYSE: GPN) and Acuity Brands Inc. (NYSE: AYI).
Pre-Market Movers: YUM, MCD, ADBE, TWTR
- Pre-Market Movers No. 1, YUM: Shares of Yum! Brands Inc. (NYSE: YUM) cratered more than 15.4% this morning after the company slashed its full-year forecast and offered a weaker earnings report than expected. The company reported an EPS of $1.00 on revenue of $3.42 billion, below expectations of both Wall Street and Estimize estimates. The company blamed a slowing economic recovery in China and a rising U.S. dollar. The news also dragged down shares of its rival McDonald’s Corp. (NYSE: MCD), which has also seen problems in China. Shares were down 1.5% today.
- Pre-Market Movers No. 2, ADBE: Shares of Adobe Systems Inc. (Nasdaq: ADBE) slipped roughly 2% on news the company slashed its 2016 profit outlook due to a rising U.S. dollar.
- Pre-Market Movers No. 3, TWTR: Shares of Twitter Inc. (NYSE: TWTR) were up more than 1.3% this morning on news Saudi Prince Alwaleed and the Kingdom Holding investment firm have boosted their stake by another 5%.
Stocks to Watch: BUD, SAB, FCX
- Stocks to Watch No. 1, BUD: The world’s largest beer brewer Anheuser-Busch InBev SA (NYSE ADR: BUD) has boosted its bid for rival SABMiller Plc. (LON: SAB) to a little more than 68 billion pounds ($104 billion). The Budweiser brewer is aiming to reach into the African and Asian markets, but the size of the deal and its scope are expected to attract significant regulatory scrutiny.
- Stocks to Watch No. 2, FCX: Shares of Freeport-McMoRan Inc. (NYSE: FCX) continue to move this morning, a day after it rose by nearly 6% yesterday, following the commodity producer's announcement it’s planning to exit the oil and gas production business.
Today’s U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- Gallup U.S. Job Creation Index at 8:30 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 10-Year Note Auction at 1 p.m.
- Consumer Credit at 3 p.m.
What Investors Must Know This Week
- The One Stock to Profit from China’s Trillion-Dollar Megaproject
- CHARTS: Gold Price Forecast Sees Rise Before 2016
- How to Protect Against the Biggest Threat to Your Money Today
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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.