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Good morning! For Tuesday, Nov. 24, here are your Dow Jones futures, earnings reports, top stock market news, and stocks to watch…
Stock Futures Today
Dow futures were down 110 points ahead of opening bell. Investors will watch this morning for the release of the third-quarter GDP report, the Case-Shiller housing report, and the October consumer confidence report.
On Monday, the DJIA dropped 31 points thanks to a small sell-off in key components like Apple Inc. (Nasdaq: AAPL), Goldman Sachs Group Inc. (NYSE: GS), and Boeing Co. (NYSE: BA). Investors kept an eye on oil prices and reacted to a negative housing report. The National Association of Realtors announced existing home sales slipped 3.4% in October to a seasonally adjusted annual rate of 5.36 million. The report suggested that would-be buyers are standing on the sidelines and no rush has been seen by housing agents ahead of the U.S. Federal Reserve's plan to raise interest rates.
Top News in the Stock Market Today
- The Stock Market Today: On Tuesday, keep an eye out for an update on third-quarter GDP, the Case-Shiller housing index, a monthly update on international trade, and the October report on consumer confidence.
- Oil Outlook: Oil prices made headlines this morning on news that Saudi Arabia plans to provide a support level on crude moving forward. January WTI prices gained 0.7% to hit $42.05 per barrel. Meanwhile, Brent oil crude – priced in London – gained 0.7% to hit $45.12. The Saudi Arabian cabinet met and said that it will work with both OPEC and non-OPEC countries to find price stability. Prices have been under pressure due to a rising U.S. dollar that is poised to gain strength as the Fed prepares to hike rates.
Earnings Outlook: HPQ, TIF, DLTR, DSW, SDRL, GES, CPB, HRL, CHS
- Earnings Report No. 1, HPQ: After the bell, HP Inc. (NYSE: HPQ) will report fiscal fourth-quarter earnings. Wall Street anticipates that the company will report an EPS of $0.44 on top of $12.835 billion in revenue.
- Earnings Report No. 2, TIF: Before the bell, Tiffany & Co. (NYSE: TIF) will report third-quarter earnings. The luxury jewelry company is expected to report per share earnings of $0.74 on $972.05 million in revenue.
- Additional companies reporting earnings today include Dollar Tree Inc. (Nasdaq: DLTR), DSW Inc. (NYSE: DSW), Seadrill Ltd. (NYSE: SDRL), Guess? Inc. (NYSE: GES), Campbell Soup Co. (NYSE: CPB), Hormel Foods Corp. (NYSE: HRL), and Chico's FAS Inc. (NYSE: CHS).
Stocks to Watch: XRX, AA, XBIT
- Stocks to Watch No. 1, XRX: Shares of Xerox Inc. (NYSE: XRX) are in focus on news that activist investor Carl Icahn has purchased a 7% stake in the printer and copier manufacturer. The stake makes him the second-largest shareholder of the firm.
Many investors would like to be able to get a piece of the success that activist investors like Carl Icahn and Bill Ackman enjoy. Over the past decade, activist-run funds have returned nearly 267% – more than double that of the S&P 500. Watch the following video for to learn exactly how activist investors like Carl Icahn operate – and whether investors should piggyback on their moves:
- Stocks to Watch No. 2, AA: Shares of Alcoa Inc. (NYSE: AA) jumped more than 4% on news activist hedge fund Elliott Management purchased a 6.4% stake in the global aluminum producer. The company is expected to engage in a spin-off of its metal-making division from its manufacturing business. Elliott is also pushing Alcoa to divest its power generation unit.
- Stocks to Watch No. 3, XBIT: Shares of XBiotech Inc. (Nasdaq: XBIT) slumped more than 32% after the company announced a data breach during a European drug study. The drug in question has been developed to stabilize weight gain or add weight to patients suffering from colorectal cancer.
Today's U.S. Economic Calendar (all times EST)
- GDP at 8:30 a.m.
- International trade in goods at 8:30 a.m.
- Corporate Profits at 8:30 a.m.
- Redbook at 8:55 a.m.
- S&P Case-Shiller HPI at 9 a.m.
- Consumer Confidence at 10 a.m.
- Richmond Fed Manufacturing Index at 10 a.m.
- State Street Investor Confidence Index at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 2-Year FRN Note Auction at 11:30 a.m.
- 5-Year Note Auction at 1 p.m.
What Investors Must Know This Week
- Grab Double-Digit Gains from This Analyst "Fail"
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- 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.