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Good morning! For Nov. 25, 2015, here's the top stock market news and stocks to watch…
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Wednesday) gained 46 points on a heavy day of economic data ahead of Thanksgiving. Investors are keeping a close eye on domestic data, as these figures could provide clues on whether the U.S. Federal Reserve is prepared to raise interest rates in December.
Yesterday, the Dow Jones Industrial Average added 19 points on news of a stronger than expected third-quarter GDP report. The news offset consumer sentiment, which hit its lowest level in 14 months. The U.S. Commerce Department announced yesterday that the economy grew by a faster pace in the third quarter than previously expected. The third-quarter GDP revision showed an increase of a 2.1% annual pace, beating last month's estimate of 1.5%. Despite the positive gain, investors should be wary of the fact that inventory levels are accelerating.
Top News in the Stock Market Today
- The Stock Market Today: The economic calendar shifts due to the markets being closed on Thursday in observance of the Thanksgiving holiday. Today's schedule features an update on weekly jobless claims, new home sales, the EIA Petroleum status, and durable goods.
- Oil Outlook: Oil prices slipped this morning as geopolitical concerns over Turkey and Russia subsided and traders focused on the ongoing scenario of a global oversupply of crude. January WTI prices fell 1.7% to hit $42.14 per barrel. Meanwhile, Brent oil crude – priced in London – slipped 2.0% to hit $45.21.
Earnings Outlook: DE, DCI
- Earnings Report No. 1, DE: This morning, shares of Deere & Co. (NYSE: DE) are up more than 4% after the company handily beat earnings expectations. The agricultural manufacturer announced an EPS of $1.08 on revenue of $6.72 billion. Wall Street expectations called for per-share earnings of $0.74 on $6.131 billion.
- Earnings Report No. 2, DCI: Before the bell, Donaldson Co. Inc. (NYSE: DCI) announced per-share earnings of $0.34 on $534 million in revenue. These are mixed numbers compared to what Wall Street expected. Consensus expectations called for an EPS of $0.33 on $555.68 million in revenue.
Stocks to Watch: SHPG, BXLT, DYAX, HRL, WMT
- Stocks to Watch No. 1, SHPG: Shares of Shire Plc. (Nasdaq ADR: SHPG) were off more than 2.4% on news the company plans to make an offer for biotech giant Baxalta Inc. (NYSE: BXLT). The deal will create one of the world's largest rare disease specialists. The announcement comes just three weeks after Shire announced a $5.9 billion deal for Dyax Corp. (Nasdaq: DYAX).
- Stocks to Watch No. 2, HRL: Shares of Hormel Foods Corp. (NYSE: HRL) were up more than 1.6% on news the food producer will conduct a two-for-one stock split. The split will have a record date of Jan. 26, 2016.
- Stocks to Watch No. 3, WMT: Shares of Wal-Mart Stores Inc. (NYSE: WMT) were off slightly this morning after The Wall Street Journal announced the global retailer may be implicated in a misconduct scandal in Brazil. The newspaper alleges the firm might have engaged in bribery.
Today's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- Durable Goods Orders at 8:30 a.m.
- Jobless Claims at 8:30 a.m.
- Personal Income and Outlays at 8:30 a.m.
- FHFA House Price Index at 9 a.m.
- PMI Services Flash at 9:45 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- New Home Sales at 10 a.m.
- Consumer Sentiment at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 7-Year Note Auction at 11:30 a.m.
- EIA Natural Gas Report at 12 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.