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Good morning! For Nov. 5, 2015, here's your top stock market news and stocks to watch…
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Thursday) were up 17 points this morning as markets continue to parse through statements made by members of the Federal Reserve and react to positive earnings reports. Asian and European markets were down after investors reacted to the increased possibility of an interest rate hike in 2015.
Yesterday, the Dow Jones Industrial Average slipped 50 points after U.S. Federal Reserve Chairwoman Janet Yellen hinted the possibility of an interest rate hike in December remained "live." Yellen cited improvements in the U.S. labor market and an expected return to the target inflation rate of 2%, according to her statement today. According to the CME Group's FedWatch, the odds of a rate hike have jumped from 52% to 58%. Meanwhile, gold prices slipped to a one-month low as traders anticipate a stronger dollar in today's trading session.
Top News in the Stock Market Today
- The Stock Market Today: Six members of the Federal Reserve will give speeches and chime in on the possibility of an interest rate hike in December. On the data side, pay attention to weekly jobs claims – which are hovering near a 42-year low – and the Bloomberg Consumer Comfort Index.
- Oil Outlook: Oil priceswere down marginally this morning on news U.S. inventory levels continue to build. December futures for WTI crude were off 0.17% to hit $46.24 per barrel, while Brent crude were flat to trade at $48.58 per barrel. Prices remain volatile after the Energy Information Administration (EIA) announced domestic crude stocks increased by 2.85 million barrels last week. Meanwhile, U.S. imports slipped to their lowest levels since 1991.
Earnings Outlook: DIS, WTW, RL, TRIP, CELG, MNST, SYMC, CROX
- Earnings Report No. 1, DIS: After the bell, Walt Disney Co.(NYSE: DIS) will report earnings for the fourth quarter. Wall Street analysts maintain a consensus outlook for earnings of $1.17 per share on $13.56 billion in revenue. Disney stock slumped hard on Wednesday due to a poor report from Time Warner Inc. (NYSE: TWX), which raised concerns about potential cord cutting among cable customers.
- Earnings Report No. 2, WTW: After the bell,Weight Watchers International Inc. (NYSE: WTW) will report third quarter earnings, and the pressure is on for the diet company after the recent deal that saw Oprah Winfrey join the firm's board of directors and purchase 10% of its equity. The company is expected by Wall Street to report quarterly earnings of $0.30 per share on $265.6 million in revenue.
- Earnings Report No. 3, RL: Before the bell, Ralph Lauren Corp. (NYSE: RL) will report fiscal second-quarter earnings. The fashion icon has seen shares plunge by nearly 40% from its 52-week high this year and has seen increased downward pressure since a downgrade last week from investment bank Barclays Plc. (NYSE ADR: BCS).
- Additional companies reporting earnings include Agrium Inc. (NYSE: AGU), Crocs Inc. (Nasdaq: CROX), Tripadvisor Inc. (Nasdaq:TRIP), Monster Beverage Corp. (Nasdaq: MNST), Symantec Corp. (Nasdaq: SYMC), Skyworks Solutions Inc. (Nasdaq: SWKS), and Celgene Corp. (Nasdaq: CELG).
Pre-Market Movers: FB, VLKAY, WFM
- Pre-Market Movers No. 1, FB: Shares of Facebook Inc. (Nasdaq: FB) surged to an all-time high after reporting third-quarter earnings Wednesday after the bell. The social media giant reported earnings of $0.57 per share on top of $4.50 billion in revenue. That easily beat Wall Street expectations of $0.52 per share on revenue of $4.38 billion. The stock was up 3.76% in premarket hours. The stock continues to defy the odds and prove naysayers wrong. The company reached one billion in the third quarter.
- Pre-Market Movers No. 2, VLKAY: Shares of Volkswagen AG (OTCMKTS ADR: VLKAY) will be in focus today after Germany announced plans to retest all car models made by the auto-manufacturers as new problems in the firm's emissions testing emerge.
- Pre-Market Movers No. 3, WFM: Shares of Whole Foods Market Inc. (Nasdaq: WFM) slumped 6.2% after the company missed top- and bottom-line quarterly earnings figures. The grocer reported an EPS of $0.30 on revenue of $3.44 billion; that's well below an anticipated EPS of $0.35 on $3.48 billion. The firm also reported a contraction in same-store sales during the fourth quarter and cited an increase in competition that is holding the firm back. In the fourth quarter, same-store sales slipped 2.1%
Today's U.S. Economic Calendar (all times EST)
- Challenger Job-Cut Report at 7:30 a.m.
- Jobless Claims at 8:30 a.m.
- Productivity and Costs at 8:30 a.m.
- Gallup Good Jobs Rate at 8:30 a.m.
- Philadelphia Federal Reserve Bank President Patrick Harker speaks at 8:30 a.m.
- New York Federal Reserve Bank President William Dudley speaks at 8:30 a.m.
- Federal Reserve Vice Chair Stanley Fischer speaks at 9:10 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- Chicago Federal Reserve Bank President Charles Evans speaks at 10:40 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 52-Week Bill Announcement at 11 a.m.
- Federal Reserve Gov. Daniel Tarullo speaks at 12:45 p.m.
- Atlanta Federal Reserve Bank President Dennis Lockhart speaks at 1:30 p.m.
- Treasury STRIPS at 3 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 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
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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.