For Oct. 8, 2015, here are your stock market futures, earnings reports, top stock market news, and stocks to watch…
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Thursday, Oct. 8, 2015) slipped 55 points in pre-market hours as the earnings season unofficially kicks off and traders await the release of the minutes from the Fed Open Market Committee meeting in September.
On Wednesday, the Dow Jones Industrial Average added 122 points, despite broader market concerns about corporate earnings and the end in the crude oil price rally.
Yesterday, the biggest elephant in the market was further exposed after Bank of America Corp. (NYSE: BAC) announced banks have roughly $100 billion in exposure to struggling energy giant Glencore Plc. (LON: GLEN). Money Morning Global Credit Strategist Michael Lewitt has explained this stock has a long way to fall and might be the energy market's "Lehman Brothers" moment…
Top News in the Stock Market Today
- The Stock Market Today: Today, three members of the U.S. Federal Reserve will give speeches while the Fed releases minutes from its recent FOMC meeting. Though the markets were not shocked by news last month that the Fed elected to keep interest rates at record lows, traders will be looking for clues on when the Fed may consider its next increase in rates and attempt to better understand the committee's justification for its decision.
- Oil Outlook: Oil prices were on the rise this morning, despite concerns about a buildup in U.S. domestic crude inventories. Yesterday, the U.S. Energy Information Administration surprised traders by announcing the nation boosted inventories by 3.3 million barrels last week, well ahead of consensus expectations. WTI prices are up 0.7% in pre-market hours at $48.17 per barrel. Meanwhile, Brent crude prices were up 0.8% to $51.75.
Earnings Outlook: AA, DPZ, RT, ANGO, ISCA
- Earnings Reports No. 1, AA: After the market close, bellwether aluminum giant Alcoa Inc. (NYSE: AA) "unofficially" kicks off the earnings season. Wall Street analysts anticipate the company will produce earnings per share of $0.14 on top of $5.67 billion in revenue.
- Earnings Reports No. 2, DZP: This morning, shares of Domino's Pizza Inc. (NYSE: DPZ) dipped 3.2% after the company reports missed quarterly profit levels by $0.07 and missed revenue forecasts of both Wall Street and Estimize analysts. The company reported per-share earnings of $0.74 and cited a strong dollar for affecting its profits.
- Additional companies reporting earnings include Ruby Tuesday Inc. (NYSE: RT), AngioDynamics Inc. (Nasdaq: ANGO), and International Speedway Corp. (Nasdaq: ISCA).
Pre-Market Movers: CC, DD, BMR, BX
- Pre-Market Movers No. 1, CC: Shares of Chemours Co. (NYSE: CC) jumped more than 9.5% this morning on news that the former DuPont Co. (NYSE: DD) chemical-manufacturing unit may be on the block. This morning, Bloomberg reported that private equity giant Apollo Global Management is considering a deal. However, multiple tax obstacles exist after the company's recent July spin-off.
- Pre-Market Movers No. 2, BMR: Shares of BioMed Realty Trust Inc. (NYSE: BMR) were up more than 8.4% on news that the company will be purchased by private equity giant Blackstone Group LP (NYSE: BX) in an all-cash deal worth $8 billion.
Stocks to Watch: VLKAY, FCAU
- Stocks to Watch No. 1, VLKAY: A top U.S. executive at the world's largest car company (by sales) will admit this morning that he knew the company may have been breaking domestic emissions rules as many as 18 months before the firm admitted to cheating its diesel tests to the government. This afternoon, Michael Horn of Volkswagen AG (OTCMKTS ADR: VLKAY) will issue a written testimony and answer questions. The massive scandal has knocked one-third of the company's stock price off since the story broke three weeks ago.
- Stocks to Watch No. 2, FCAU: Global automotive giant Fiat Chrysler Automobiles NV (NYSE: FCAU) announced that it has reached a tentative agreement with the United Auto Workers Union and will avoid a strike. The four-year labor contract is the second reached between the two parties. In September, the union's workers rejected the first contract proposal. On Tuesday, the UAW issued a warning that a strike was poised for midnight last night.
Today's U.S. Economic Calendar (all times EDT)
- Jobless Claims at 8:30 a.m.
- St. Louis Federal Reserve Bank President James Bullard Speaks at 9:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 52-Week Bill Announcement at 11 a.m.
- Minneapolis Federal Reserve Bank President Narayana Kocherlakota speaks at 1 p.m.
- 30-Year Bond Auction at 1 p.m.
- Fed Open Market Committee Minutes at 2 p.m.
- San Francisco Federal Reserve Bank John Williams speaks at 3:30 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 p.m.
What Investors Must Know This Week
- The Fastest Way to Profit from a $709 Billion Industry Shift
- Five Tech Stocks That Soared While the Markets Tanked
- Here's Where the Next Oil Sector Profits Will Be Made
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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.