Good morning! For Friday, Oct. 30, 2015, here are your Dow Jones futures, earnings reports, top stock market news, and stocks to watch...
Stock Futures Today
Dow futures were up 29 points as the markets prepare to conclude a busy week of earnings. Around the globe, the Bank of Japan became the latest central bank to hold steady on monetary policy and take a wait-and-see approach to the U.S. Federal Reserve's pending decision on whether it will raise rates in December.
On Thursday, DJIA dipped 23 points after a ho-hum Q3 GDP report and as markets priced in the possibility of an interest rate hike in December. Additionally, the U.S. Commerce Department reported a third-quarter GDP reading of 1.5%, below the 1.6% consensus predicted by economists. The paltry figure was a steep decline from the 3.9% gain reported in the second quarter.
Top News in the Stock Market Today
- The Stock Market Today: This morning, the U.S. Senate approved new legislation that will end the threat of government debt default for the conclusion of the the Obama presidency. Later, the monthly consumer sentiment report and Chicago PMI headline a busy day of data, while Fed members John Williams and Esther George will give speeches. On the global front, pay attention to a press conference from the Bank of Japan, the October consumer price index in the Eurozone, and a monthly GDP report in Canada.
- Oil Outlook: Oil prices gained this morning despite news that the U.S. third-quarter GDP figure failed to meet investor expectations. December futures for WTI crude were up roughly 0.5% to hit $46.27 per barrel, while Brent crude added 0.8% to trade at $49.19 per barrel. This afternoon, U.S. oil production will be in focus when Baker Hughes Inc. (NYSE: BHI) reports the weekly oil rig count. Last week, the rig count hit a five-year low.
Pre-Market Movers: VRX, CVS, LNKD, SBUX
- Pre-Market Movers No. 1, VRX: Shares of Valeant Pharmaceuticals Intl. Inc. (NYSE: VRX) have cratered another 9% before opening bell on news that CVS Health Corp. (NYSE: CVS) and Express Scripts have dumped specialty pharmacy Philidor from its network. According to reports, the pharmacy - connected to Valeant - had altered doctors' orders in order to boost reimbursement payments from insurers.
- Pre-Market Movers No. 2, LNKD: Shares of LinkedIn Corp. (NYSE: LNKD) surged 12.4% after the company easily beat Wall Street revenue and earnings estimates. The firm said it boosted revenue thanks to strong growth in its recruitment services, advertising, and membership figures.
- Pre-Market Movers No. 3, SBUX: Shares of Starbucks Corp. (Nasdaq: SBUX) were off 0.5% after the company issued a weak outlook for the holiday quarter. The company said that it saw strong growth around the world, but concerns about China and a stronger dollar led the coffee giant to urge caution in the months ahead.
Earnings Outlook: XOM, CVS, CVX, CL, NWL, BOX, ABBV
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- Earnings Report No. 1, XOM: Shares of Exxon Mobil Corp. (NYSE: XOM) were up slightly this morning after the company reported third-quarter earnings. The firm reported a 47% profit decline due to cratering oil prices over the last year. The world's largest publicly traded oil firm reported an EPS of $1.01 on revenue of $67.3 billion. Wall Street analysts expected earnings of $0.89 per share on top of $68.0 billion in revenue.
- Earnings Report No. 2, CVS: Before the bell, CVS Health Corp. (NYSE: CVS) reported mixed third-quarter earnings. The firm reported an EPS of $1.29, missing Wall Street expectations by a penny. Still, CVS did beat revenue expectations.
- Earnings Report No. 3, CVX: Shares of Chevron Corp. (NYSE: CVX) will be on the move later this morning after the multinational oil giant reported fiscal-third-quarter earnings. Wall Street anticipated an EPS of $0.79 on $22.55 billion in revenue.
- Additional companies reporting earnings include Colgate-Palmolive Co. (NYSE: CL), Newell Rubbermaid Inc. (NYSE: NWL), Moody's Corp. (NYSE: MCO), AbbVie Inc. (Nasdaq: ABBV), Box Inc. (NYSE: BOX), and ITT Corp. (NYSE: ITT).
Today's U.S. Economic Calendar (all times EDT)
- Personal Income and Outlays at 8:30 a.m.
- Employment Cost Index at 8:30 a.m.
- Chicago PMI at 9:45 a.m.
- Consumer Sentiment at 10 a.m.
- San Francisco Federal Reserve Bank President John Williams speaks at 10 a.m.
- Kansas City Federal Reserve Bank President Esther George speaks at 11:25 a.m.
- Baker-Hughes Rig Count at 1 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.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.