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Good morning! For Oct. 21, 2015, here is your stock market news and stocks to watch…
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Wednesday) were up 77 points as the markets focus on an oil supply update, earnings season, and new rounds of economic data.
On Tuesday, the Dow Jones Industrial Average 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 News in the Stock Market Today
- The Stock Market Today: 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.
- Oil Outlook: Oil prices slipped this morning on an initial weak read of domestic crude inventories from the American Petroleum Institute. November futures for WTI crude were down about 1.7%, while Brent crude fell 1%. Today, the Energy Information Administration will report the weekly petroleum status report, which will offer insight into crude stock inventories and demand in the United States.
Earnings Outlook: KO, BA, EBAY, SNDK, TXN, LVS, AXP
- Earnings Reports No. 1, KO: Before the bell, The Coca-Cola Co. (NYSE: KO) reported third-quarter earnings. The soda maker beat earnings per share estimates by a penny, reporting an adjusted EPS of $0.51. However, revenue was lower than expected, as the firm said it was affected by a stronger U.S. dollar.
- Earnings Reports No. 2, BA: Before the bell, Boeing Co. (NYSE: BA) shares were up more than 2.2% after the company reported better than expected third-quarter earnings. The firm showed a profit of $2.52 per share, beating estimates by $0.30. The company also hiked its full-year earnings and revenue guidance.
- Earnings Reports No. 3, EBAY: After the bell, eBay Inc. (Nasdaq: EBAY) will report fiscal third-quarter earnings. Wall Street analysts anticipate a consensus report of $0.41 on revenue of $2.098 billion.
- Additional companies reporting earnings include SanDisk Corp. (Nasdaq: SNDK), Texas Instruments Inc. (Nasdaq: TXN), Las Vegas Sands Corp. (NYSE: LVS), and American Express Co. (NYSE: AXP).
Pre-Market Movers: SNDK, BIIB, WDC, AMZN, WMT
- Pre-Market Movers No. 1, SNDK: Shares of SanDisk Corp. (Nasdaq: SNDK) were up more than 4.6% after the hard-drive manufacturer announced it has agreed to sell itself to Western Digital Corp. (Nasdaq: WDC) for roughly $19 billion. Shares of Western Digital fell more than 3.8% on the news.
- Pre-Market Movers No. 2, BIIB: Shares of Biogen Inc. (Nasdaq: BIIB) popped more than 5.3% after the biotech giant announced plans to slash 11% of its global workforce by the end of 2015. The firm also said it was going to halt a late-stage trial for its blockbuster drug Tecfidera.
- Pre-Market Movers No. 3, AMZN: Shares of Amazon.com Inc. (Nasdaq: AMZN) were up roughly 0.5% as the company prepares to release earnings on Thursday. The company's report is set to take on a whole new significance in light of Wal-Mart Stores Inc.'s (NYSE: WMT) surprising news that it forecasts a decline in earnings by 6% to 12% over the next two years. Here's how to trade ahead of the Amazon earnings report.
Today's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7m.
- EIA Petroleum Status Report at 10:30m.
- Federal Reserve Gov. Jerome Powell speaks at 1:30m.
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.