Dow Jones Industrial Average Rises as Crude Traders Higher

Good morning! For Dec. 23, 2015, here is the top stock market news and stocks to watch...

Stock Futures Today

Futures for the Dow Jones Industrial Average today (Wednesday) were up 28 points as global exchanges pushed higher earlier in the day. Rising oil prices complemented a slight dip in the U.S. dollar, while the Chinese yuan has shown greater signs of stabilization this week. Although investors expect lower than average volumes over the next two days, concerns will remain in place next week and beyond regarding high-yield debt and the struggling energy sector in the United States.

Yesterday, the Dow Jones Industrial Average gained 165 points, fueled by a rise in oil prices and a surge in shares of index component Caterpillar Inc. (NYSE: CAT). Shares of CAT stock added more than 4.8% despite news the company has been found guilty of misusing trade secrets it obtained from a company supplier. All 10 major S&P sectors were positive yesterday, with energy stocks and material stocks as the top performers.

Top News in the Stock Market Today

• The Stock Market Today: Investors will keep an eye on any changes to U.S. oil inventory levels, a monthly report on single-family housing sales, and durable goods orders. Liquidity is expected to remain low in advance of the short trading week. On the global front, look out for GDP reports from Canada and the United Kingdom.
• M&A Scrutiny: A recent M&A approval by the U.S. Justice Department has earned scrutiny from the Pentagon, so much that the U.S. Defense Department and other government organizations are seeking the right to block deals that may hinder national security. Defense Under Secretary Frank Kendall pushed for changes after Lockheed Martin Corp. (NYSE: LMT) received DOJ approval to purchase the Sikorsky Aircraft division from United Technologies Corp. (NYSE: UTX) for $9 billion. The Pentagon is concerned future deals could fuel increased consolidation of military suppliers, which could reduce competition, decrease innovation, and spur higher costs.
• Oil Outlook: Oil prices pushed higher after the U.S. benchmark sank below $34 a barrel for the first time since 2009 earlier this week. For a brief period, U.S. crude prices traded higher than Brent crude prices as the American government prepares to end its four-decade ban on exports. February's WTI prices gained 0.7% to $36.40 per barrel this morning. Meanwhile, Brent oil crude - priced in London - added 0.9% to reach $36.43. Given that WTI crude is a higher-quality product with less sulfur, U.S. crude prices may soon rise above Brent crude given its favorability among refinery customers.

Earnings Outlook: CALM, LNN, CSPI

• Earnings Report No. 1, CALM: After the market closes, Cal-Maine Foods Inc. (Nasdaq: CALM) is expected to report fiscal second-quarter earnings of $2.28 on top of bottom-line revenue of $561.3 million.
• Earnings Report No. 2, LNN: This morning, Lindsay Corp. (NYSE: LNN) is expected to report a fiscal first-quarter EPS of $0.56 on top of $132.08 million in revenue.
• Additional companies reporting earnings today include CSP Inc. (Nasdaq: CSPI).

 Stocks to Watch: NKE, SHPG, BXLT, CMG, AMZN, BBBY, SUNE, VSLR

• Stocks to Watch No. 1, NKE: Shares of Nike Inc. (NYSE: NKE) were up 4.1% in pre-market hours after the company beat Wall Street earnings expectations after the bell Tuesday. After the stock market close today, Nike will provide investors with two shares for every one they already hold. Here's what you need to know about the Nike stock split.
• Stocks to Watch No. 2, SHPG: After five months, it appears Irish pharma giant Shire Plc. (Nasdaq ADR: SHPG) has made an offer in line with valuation expectations of Baxalta Inc. (NYSE: BXLT), a drug manufacturer that targets rare diseases. According to a report by Reuters, the firms are expected to announce a deal within the next few weeks.
• Stocks to Watch No. 3, BBBY: Shares of Bed Bath & Beyond Inc. (Nasdaq: BBBY) were off more than 6.2% after the company slashed its outlook after projecting weak third-quarter sales and earnings below Wall Street expectations. The company said it has experienced increased competitive pressures from online retailers like Amazon.com Inc. (Nasdaq: AMZN).
• Stocks to Watch No. 4, SUNE: Shares of Sunedison Inc. (NYSE: SUNE) continued to crater in pre-market hours after the stock slumped more than 21% on Tuesday. Shares slumped after a hedge fund run by David Tepper asked for financial statements related to the company's recent buy of Vivint Solar Inc. (NYSE: VSLR).

Today's U.S. Economic Calendar (all times EST)

• MBA Mortgage Applications at 7 a.m.
• Durable Goods Orders at 8:30 a.m.
• Personal Income and Outlays at 8:30 a.m.
• New Home Sales at 10 a.m.
• Consumer Sentiment at 10 a.m.
• EIA Petroleum Status Report at 10:30 a.m.
• 2-Year FRN Note Auction at 11:30 a.m.

What Investors Must Know This Week

• The Best Market Crash Insurance You Can Buy
• Grab Triple-Digit Gains from This "Stealth" Tech Star
• The Real Reason for China's Insatiable Gold Lust

Follow us on Twitter @moneymorning or like us on Facebook.

[mmpazkzone name="end-story-hostage" network="9794" site="307044" id="138536" type="4"]