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Good morning! For Oct. 28, 2015, here is your top stock market news and stocks to watch…
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Wednesday) added seven points as the Fed Open Market Committee concludes its seventh meeting of 2015 and markets react to the Q4 earnings report from Apple Inc. (Nasdaq: AAPL). U.S. Federal Reserve Chairwoman Janet Yellen is unlikely to announce the central bank raised interest rates during its meeting. However, investors can reasonably expect the Fed will claw back some language tied to September's statement regarding disinflationary exposure to markets like China.
Yesterday, the Dow dipped 41 points before the Apple Q4 earnings report was released after the bell. The tech giant reported the largest annual profit in the history of the markets. Boosted by record iPhone sales, the company announced it earned $53.4 billion over the last 12 months.
Top News in the Stock Market Today
- Stock Market Today: Today, the FOMC meeting will conclude, and the Fed will release a statement on its October rate decision. Investors should also keep an eye out for the U.S. Energy Information Administration's weekly petroleum status report and an update on mortgage approvals. Analysts expect a buildup of roughly 7.3 million barrels, which represents a 9% decline from the previous report.
- Oil Outlook: Oil prices were down marginally this morning, despite news of an inventory drawdown at the Cushing crude oil hub. November futures for WTI crude were off about 0.2% to hit $43.12 per barrel, while Brent crude slipped 0.3% to trade at $46.66 per barrel. According to the American Petroleum Institute, inventory levels at the major crude hub fell by nearly 750,000 barrels last week.
Earnings Outlook: YELP, WBA, GPRO, FVIV, AMGN, MAR
- Earnings Report No. 1, YELP: Shares of Yelp Inc. (NYSE: YELP) were down 1.2% in pre-market hours as the company prepares to release earnings after the bell Wednesday. The embattled "word-of-mouth" tech platform and restaurant delivery processor is expected to report an earnings per share loss of $0.09 on revenue of $141.5 million. Yelp stock is off more than 60% over the last 52 weeks.
- Earnings Report No. 2, WBA: Before the bell, Walgreens Boots Alliance Inc. (Nasdaq: WBA) will report fiscal fourth-quarter earnings, a day after news broke that it's going to purchase smaller rival Rite Aid Corp. (NYSE: RAD) for at least $10 billion. The company is expected to announce an EPS of $0.81 on top of roughly $28.9 billion in revenue. Shares jumped more than 5.6% on Tuesday.
- Earnings Report No. 3, GPRO: After the bell, GoPro Inc. (Nasdaq: GPRO) will report third-quarter earnings. The camera manufacturer is expected to report an EPS of $0.29 on top of $438 million in revenue.
- Additional companies reporting earnings include F5 Networks Inc. (Nasdaq: FFIV), Amgen Inc. (Nasdaq: AMGN), and Marriott International Inc. (Nasdaq: MAR).
Pre-Market Movers: HOT, BUD, SBMRY, TWTR, GILD
- Pre-Market Movers No. 1, HOT: Shares of Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) are on the move (after gaining nearly 9% Tuesday) on news three Chinese companies are seeking to purchase the global hotel and leisure company. The potential deal for the $12 billion firm could be the largest takeover of an American company by a Chinese firm in corporate history.
- Pre-Market Movers No. 2, BUD: Global brewing giant SABMiller Plc. (OTCMKTS ADR: SBMRY) announced it has extended the deadline for rival Anheuser Busch Inbev SA (NYSE ADR: BUD) to make a formal $100 billion takeover offer by Nov. 4.
- Pre-Market Movers No. 3, TWTR: Shares of microblogging giant Twitter Inc. (NYSE: TWTR) were off more than 12.5% this morning after the firm reported weakened guidance for the fourth quarter. Q3 revenue was up 58% year over year to $569 million. Q3 GAAP EPS was $0.20, and non-GAAP diluted EPS was $0.10. Total average monthly active users (MAUs) were up to 320 million – an 11% year-over-year gain. Here's why that's such a big deal… and why the stock is falling…
- Pre-Market Movers No. 4, GILD: Shares of Gilead Sciences Inc. (Nasdaq: GILD) dipped 1.5% after the biotech company reported quarterly earnings after the bell on Tuesday. The company reported per-share earnings of $3.22, beating consensus expectations of $2.87 per share.
Today's U.S. Economic Calendar (all times EDT)
- Durable Goods Orders at 8:30 a.m.
- MBA Mortgage Applications at 7 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 2-Year FRN Note Auction at 11:30 a.m.
- 5-Year Note Auction at 1 p.m.
- FOMC Meeting Announcement 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.