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For Nov. 4, 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 (Wednesday) were up 33 points on news that private employers added 182,000 jobs in October, beating consensus expectations by a slim margin. A busy day of data and testimony by U.S. Federal Reserve Chairwoman Janet Yellen before Congress will complement a wealth of earnings reports. With the ADP jobs report beating expectations of 180,000 positions for October, all eyes will now turn to Friday's official jobs report from the U.S. Labor Department.
On Tuesday, the Dow added 89 points as energy stocks surged despite supply concerns around the globe. Energy stocks are now up 23% since August but still remain down 10% year to date. The Nasdaq continued to gather steam, adding 17 points as the exchange prepares for a busy day of earnings today. The tech sector added roughly 0.5% after shares of Apple Inc. (Nasdaq: AAPL) and Microsoft Corp. (Nasdaq: MSFT) each rose more than 1.2%.
Top News in the Stock Market Today
- The Stock Market Today: Today, five members of the U.S. Federal Reserve will speak, including testimony by Fed Chairwoman Janet Yellen before the House Financial Services Committee. Traders will seek any hints on when the central bank may raise interest rates. Meanwhile, the jobs market will be in focus with the release of the October ADP private employment report. Investors will also parse through monthly data on international trade, weekly oil inventories, and the PMI Services Index.
- Oil Outlook: Oil prices were on the rise this morning as concerns about supply in Brazil rattled trader sentiment. December futures for WTI crude were up about 0.2% to hit $48.01 per barrel, while Brent crude added 0.3% to trade at $50.67 per barrel. Brazil's largest oil workers' union has walked out on a strike due to outrage related to expected cuts planned by Petrobas, the nation's largest oil producer.
Earnings Outlook: FB, KORS, WFM, SODA, DDD, RIG, QCOM
- Earnings Report No. 1, FB: After the bell, Facebook Inc. (Nasdaq: FB) will report third-quarter earnings. Wall Street analysts expect the social media giant to report earnings of $0.52 per share on revenue of $4.39 billion.
- Earnings Report No. 2, KORS: This morning, shares of Michael Kors Holdings Ltd. (NYSE: KORS) gained more than 5% after it crushed fiscal second-quarter top and bottom line earnings by a wide margin. The company reported an EPS of $1.01 on revenue of $1.13 billion. That's well above Wall Street expectations of earnings of $0.89 per share on $1.07 billion in revenue.
- Earnings Report No. 3, WFM: After the bell, Whole Foods Market Inc. (Nasdaq: WFM) will report quarterly earnings for the fourth quarter. The healthy grocer is expected to report an EPS of $0.35 on revenue of $3.48 billion.
- Additional companies reporting earnings include Sodastream International Ltd. (Nasdaq: SODA), 3D Systems Corp. (NYSE: DDD), Qualcomm Inc. (Nasdaq: QCOM), and Transocean Ltd. (NYSE: RIG).
Pre-Market Movers: CHK, TWX, VRX
- Pre-Market Movers No. 1, CHK: Shares of Chesapeake Energy Corp. (NYSE: CHK) slashed its capital budget for the second time in 2015 as falling oil and gas prices cut into its future projects. However, the firm said that it has boosted its expected production output by an additional 3,000 barrels of oil per day. CHK stock is down roughly 65% in the last 12 months as the company suffers from cratering commodity prices.
- Pre-Market Movers No. 2, TWX: Shares of Time Warner Inc. (NYSE: TWX) were off 0.1% this morning after the company beat profit and earnings estimates. The firm said that it saw improving revenue from its Warner Brothers and HBO units. On Tuesday, the company announced that former "Daily Show" host Jon Stewart has signed a four-year production deal to create digital content for its mobile platforms.
- Pre-Market Movers No. 3, VRX: Shares of Valeant Pharmaceuticals International Inc. (NYSE: VRX) were up 1.3% this morning after activist investor Carl Icahn hinted some level of interest in the struggling Canadian drug manufacturer. Icahn's statements came during the annual New York Times DealBook conference. As we noted earlier this week, famed investor Charlie Munger had set a target on the back of VRX stock.
Today's U.S. Economic Calendar (all times EST)
- Federal Reserve Gov. Lael Brainard Speaks at 5:30 a.m.
- MBA Mortgage Applications at 7 a.m.
- ADP Employment Report at 8:15 a.m.
- International Trade at 8:30 a.m.
- Gallup U.S. Job Creation Index at 8:30 a.m.
- Treasury Refunding Announcement at 8:30 a.m.
- 10-Year Note Announcement at 8:30 a.m.
- 30-Year Bond Announcement at 8:30 a.m.
- Philadelphia Federal Reserve Bank President Patrick Harker speaks at 8:45 a.m.
- PMI Services Index at 9:45 a.m.
- Federal Reserve Chairwoman Janet Yellen speaks at 10 a.m.
- ISM Non-Manufacturing Index at 10:00 AM ET
- EIA Petroleum Status Report at 10:30 a.m.
- 2-Year Note Auction at 1 p.m.
- New York Federal Reserve Bank President William Dudley Speaks at 2:30 p.m.
- Federal Reserve Vice Chair Stanley Fischer speaks at 6 p.m.
What Investors Must Know This Week
- Grab Double-Digit Gains from This Analyst "Fail"
- Three Game Changers Fueling a Natural Gas Rebound
- Brace Yourself for This $2 Trillion Global Disruption
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.