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For Oct. 13, 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 (Tuesday, Oct. 13, 2015) were down 85 points as the global markets reacted to news of weak Chinese trade data and reports that the People's Bank of China is pushing fresh stimulus measures.
On Monday, the Dow Jones Industrial Average added 47 points during a light trading session. Investors kept their focus on a falling U.S. dollar and the growing expectation that the U.S. Federal Reserve will not raise interest rates in October or December. With just one major company reporting earnings during a federal holiday (Columbus Day), traders bent an ear to speeches by three members of the Fed Open Market Committee.
Top News in the Stock Market Today
- The Stock Market Today: Today, an important day of earnings results complements a speech by Federal Reserve hawk and non-voting member James Bullard. On the global front, Germany will report its ZEW Economic Sentiment for October, while the U.K. announces CPI and PPI data. Following a slow day in the U.S. markets, expect both reports to influence Dow futures before the market opens on Tuesday.
- Oil Outlook: Oil prices were pushing higher this morning despite a report by the International Energy Agency that a global glut threatens the markets in 2016. Yesterday, oil prices plunged more than 5% on news that OPEC anticipates a large surplus due to rising U.S. crude inventories. This morning, WTI prices added another 0.4% to hit $47.27 per barrel. Meanwhile, Brent crude prices were up 0.7% to $50.21.
Earnings Outlook: INTC, JPM, JNJ, CSX, FAST, LLTC
- Earnings Reports No. 1, JPM: Before the bell, JPMorgan Chase & Co. (NYSE: JPM) will kick off earnings for the banking sector when it reports third-quarter results. Analysts anticipate a decline in trading revenue for its investment banking operations. Shareholders remain cautious about the effect of the Federal Reserve's decision to delay an interest rate hike into the fourth quarter, a decision that affects the financial sector. Wall Street analysts expect an earnings per share (EPS) of $1.39 on $23.93 billion in revenue.
- Earnings Reports No. 2, INTC: After the bell, Intel Corp. (Nasdaq: INTC) will report third-quarter earnings. Estimize analysts expect per-share earnings of $0.60 on revenue of $14.25 billion. Wall Street consensus is a bit lower, with an EPS of $0.59 and $14.23 billion in revenue.
- Earnings Report No 3, JNJ: Before market open, Johnson & Johnson (NYSE: JNJ) will report third-quarter earnings. Wall Street analysts anticipate an EPS of $1.44 on top of $17.41 billion in revenue.
- Additional companies reporting earnings include CSX Corp. (NYSE: CSX), Linear Technology Corp. (Nasdaq: LLTC), and Fastenal Co. (Nasdaq: FAST).
Pre-Market Movers: R, DYAX
- Pre-Market Movers No. 1, R: Shares of Ryder System Inc. (NYSE: R) fell 8.5% after the company slashed its 2015 earnings guidance and its sales outlook. The firm said that it anticipates a decline this year in domestic sales of used power vehicles.
- Pre-Market Movers No. 2, DYAX: Shares of Dyax Corp. (Nasdaq: DYAX) were down marginally after rumors that the biotech company could be a takeover target turned out to be untrue. At one point, shares surged as much as 53%, although the authenticity of the rumors was quickly diminished.
Stocks to Watch: BCS, SXC, HPQ
- Stocks to Watch No. 1, BCS: Investment banking giant Barclays Plc. (NYSE ADR: BCS) is likely to announce former JPMorgan Chase & Co. (NYSE: JPM) executive Jes Staley as the firm's next CEO. The appointment will be subject to regulatory approval.
- Stocks to Watch No. 2, SXC: Shares of SunCoke Energy Inc. (NYSE: SXC) cratered more than 28% after the independent coke maker reported a third-quarter loss of $0.36 per share on revenue of $336.9 million. With steel production falling over the quarter – primarily over global economic concerns linked to China – the company said it saw weak demand for the primary ingredient of the process.
- Stocks to Watch No. 3, HPQ: Shares of Hewlett-Packard Co. (NYSE: HPQ) were down this morning on news that its newly public entity Hewlett Packard Enterprise approved a $3 billion buyback program. Hewlett Packard Enterprise will become a newly traded company in November.
Today's U.S. Economic Calendar (all times EDT)
- NFIB Small Business Optimism Index at 6 a.m.
- St. Louis Federal Reserve Bank President James Bullard speaks at 8 a.m.
- Redbook at 8:55 a.m.
- 4-Week Bill Announcement at 11 a.m.
- 3-Month Bill Auction at 11:30 a.m.
- 6-Month Bill Auction at 11:30 a.m.
- Treasury Budget at 2 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
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.