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 Journalannounced the global retailer may be implicated in a misconduct scandal in Brazil. The newspaper alleges the firm might have engaged in bribery.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.
