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For Nov. 19, 2015, here's the top stock market news and stocks to watch…
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Thursday) were up 56 points as global stocks rallied and traders prepare for the release of weekly jobless claims.
Yesterday, the Dow Jones Industrial Average gained 247 points following the release of minutes from the October 2015 FOMC meeting. The U.S. Federal Reserve's minutes suggested many of its officials are encouraging an interest rate hike in December, despite concerns about the nation's long-term economic potential. CME FedWatch suggests there is a 67.8% chance the central bank will raise interest rates at its next meeting on monetary policy. So, will the Federal Reserve raise interest rates?
Top News in the Stock Market Today
- The Stock Market Today: Investors should keep an eye on the weekly jobless claims report, an update to the Philadelphia Fed Business Outlook, and speeches from two members of the Federal Reserve. The previous two weekly jobless claims reports failed to beat the consensus expectations of economists. A third-straight miss on jobless claims could raise concerns about the important November jobs report due on Dec. 4.
- Square IPO: Shares of Square Inc. (NYSE: SQ) will begin trading today after the mobile payment company underwhelmed during its initial pricing yesterday. The company planned to raise up to $351 million by selling 27 million shares for $11 to $13 each. However, the company was only able to price shares at $9 and raise $243.5 million. The company is still unprofitable, raising concerns. But is Square a potential discount buy on Thursday?
- Oil Outlook: Oil prices rose slightly as traders covered their short positions. That said, concerns about oversupply remain high. December WTI added 0.1% at $40.79 per barrel. Meanwhile, Brent oil crude – priced in London – added 0.6% to hit $44.42. Yesterday, the U.S. Energy Information Administration (EIA) announced domestic crude inventories increased last week, albeit below the build forecast among analysts. According to the EIA, U.S. crude inventories increased by 252,000 barrels compared to the expected increase of 1.9 million barrels.
Earnings Outlook: GPS, BBY, INTU, SPLK, WDAY, TFM
- Earnings Report No. 1, GPS: After the bell, retail giant Gap Inc. (NYSE: GPS) will report fiscal third-quarter earnings. The company is expected to report per-share earnings of $0.63 on revenue of $3.875 billion.
- Earnings Report No. 2, BBY: Before the bell, Best Buy Co. Inc. (NYSE: BBY) will report fiscal third-quarter earnings. Wall Street expects the big box retailer will report an EPS of $0.35 with a bottom line figure of $8.842 billion.
- Additional companies reporting earnings include Intuit Inc. (Nasdaq: INTU), Splunk Inc. (Nasdaq: SPLK), Workday Inc. (NYSE: WDAY), and The Fresh Market Inc. (Nasdaq: TFM).
Stocks to Watch: AAPL, GS, PFE, AGN, MTCH
- Stocks to Watch No. 1, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) climbed again in pre-market hours on news the tech giant joined Goldman Sachs Group Inc.'s (NYSE: GS) Conviction Buy List with a price target set at $163 per share. Goldman says it believes Apple will center its focus in 2016 on growth in the tech sector. However, investors should be wary of Goldman's Conviction Buy List. Even though Money Morning expects Apple stock to hit $200, here's why we do not trust this "Golden" list, and neither should you.
- Stocks to Watch No. 2, PFE: Shares of Pfizer Inc. (NYSE: PFE) are in focus on news the pharmaceutical giant is considering a deal to purchase Allergan Plc. (NYSE: AGN) for $370 to $380 per share, a mega-merger that would be valued around $150 billion. The possible takeover of the the Botox manufacturer comes at a time when U.S. Treasury Secretary Jack Lew said his agency is considering a new rule on tax inversions to deter American companies from buying foreign companies and relocating their headquarters in order to avoid domestic tax burdens.
- Stocks to Watch No. 3, MTCH: Shares of Match Group Inc. (Nasdaq: MTCH) will debut today as one of the most anticipated tech IPOs of the year. The dating website operator is the latest spin-off from Barry Diller's IAC/InterActiveCorp (Nasdaq: IACI). Here's a breakdown of what to expect from the debut of MTCH stock.
Today's U.S. Economic Calendar (all times EST)
- Jobless Claims at 8:30 a.m.
- Philadelphia Fed Business Outlook Survey at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- Leading Indicators at 10 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 2-Year Note Announcement at 11 a.m.
- 2-Year FRN Note Announcement at 11 a.m.
- 5-Year Note Announcement at 11 a.m.
- 7-Year Note Announcement at 11 a.m.
- Atlanta Federal Reserve Bank President Dennis Lockhart speaks at 12:30 p.m.
- 10-Year TIPS Auction at 1 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 p.m.
- Federal Reserve Vice Chair Stanley Fischer speaks at 4:45 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
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.