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For Oct. 20, 2015, here's your top stock market news and stocks to watch based on today's market moves…
How Did the Stock Market Do Today?
Dow Jones: 17,217.11; -13.43; -0.08%
S&P 500: 2,030.77; -2.89; -0.14%
Nasdaq: 4,880.97; -24.50; -0.50%
The Dow Jones Industrial Average today (Tuesday) slipped 13 points as declines in the healthcare sector offset optimism elsewhere on the exchange. The S&P 500 slipped slightly, while the Nasdaq was weighed down by shares of Tesla Motors Inc. (Nasdaq: TSLA). Tesla stock slipped more than 6% on the day after Consumer Reports removed the Model S luxury electric car from its recommended list and said it had below-average reliability. Here's how you should play TSLA stock after today's drop.
Top Stock Market News Today
- Stock Market News: Six of 10 S&P sectors were in positive territory on Tuesday, but healthcare and biotech stocks weighed down the broader market. The healthcare sector slipped more than 1.7% on the day as shares of Allergan Plc. (NYSE: AGN) and Pfizer Inc. (NYSE: PFE) fell 3.6% and 1.5%, respectively. The downturn of biotech stocks – the iShares NASDAQ Biotechnology Index ETF (Nasdaq: IBB) fell 3% – offset any bump from stronger than expected earnings reports from Verizon Communications Inc. (NYSE: VZ) and United Technologies Corp. (NYSE: UTX).
- S. Oil Prices Slip: Oil prices were mixed a day ahead of a report from the American Petroleum Institute. November WTI oil prices fell 0.1% to hit $45.55 per barrel, while Brent crude prices gained 0.2% to $48.71. Concerns about the addition of Iranian supplies are leading many to anticipate a persistent supply glut on the global markets.
- On Tap Tomorrow: On Wednesday, investors will be keeping an eye on the MBA Mortgage Applications report, the weekly oil inventory figures from the U.S. Energy Information Administration, and a speech from Federal Reserve Gov.Jerome Powell. On the global front, be sure to listen to speeches from the governors of both the Bank of Canada and the Bank of England. Companies reporting earnings tomorrow include eBay Inc. (Nasdaq: EBAY), SanDisk Corp. (Nasdaq: SNDK), The Coca-Cola Co. (NYSE: KO), Texas Instruments Inc. (Nasdaq: TXN), Boeing Co. (NYSE: BA), Las Vegas Sands Corp. (NYSE: LVS), and American Express Co. (NYSE: AXP).
Stocks to Watch: IBM, YUM, WTW, HOG
- Stocks to Watch No. 1, IBM: Shares of International Business Machines Corp. (NYSE: IBM) fell nearly 6% to $140.57, hitting five-year lows after it reported a bigger than expected fall in quarterly revenue. The company reported its 14th-straight quarterly decline in revenue, raising new concerns about the health of the technology giant and its ongoing transition toward cognitive computing.
- Stocks to Watch No. 2, YUM: Shares of Yum! Brands Inc. (NYSE: YUM) gained nearly 2% today after the global fast food giant announced plans to spin off its China business. The company bowed to pressures from activist investor Keith Meister, the founder and managing partner of Corvex Management, which owns roughly 5% of the fast food giant's stock.
- Stocks to Watch No. 3, WTW: Shares of Weight Watchers International Inc. (NYSE: WTW) surged another 32% today after Moody's said Oprah Winfrey's $43 million investment into the company was considered a "credit positive." The firm's debt is still ranked in junk territory, but Winfrey's branding and decision to join the firm's board have provided a massive boost to confidence in the company's financial situation.
- Stocks to Watch No. 4, HOG: Shares of Harley-Davidson Inc. (NYSE: HOG) slipped more than 13% after the company reported weaker than expected quarterly earnings. The company reported an EPS of $0.69 on revenue of $1.32 billion. However, Wall Street anticipated earnings of $0.78 per share on earnings of $1.20 billion. The company said domestic U.S. sales slipped by 2.5%.
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.