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For Jan. 13, 2016, here's the top stock market news and stocks to watch…
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Wednesday) forecast a 132-point gain after strong trade data was reported out of China and oil prices reversed course for the first time in 2016.
China reported its export level fell 1.4% in December. While this is a bad number, it is still far better than the 8% drop economists expected from the world's second-largest economy. Meanwhile, shares of General Motors Co. (NYSE: GM) surged 4.5% after the company hiked its 2016 profit outlook and announced another $4 billion to its stock buyback plans. The news sent shares of Ford Motor Co. (NYSE: F) down more than 1.5%.
Yesterday, the Dow Jones Industrial Average gained 117 points despite another sharp decline for crude oil prices. The markets earned a boost as technology and healthcare stocks rebounded from a rough six days of trading. Shares of Intel Corp. (Nasdaq: INTC) offered a boost to the tech sector – nearly 2% – while shares of Apple Inc. (Nasdaq: AAPL) added 1.5%.
Top News in the Stock Market Today
- The Stock Market Today: The markets will continue to focus on volatile oil prices as the U.S. Energy Information Administration reports weekly U.S. crude inventories. In addition, pay attention to speeches by two members of the U.S. Federal Reserve – Eric Rosengren (Boston) and Charles Evans (Chicago). Chinese trade data will also be in focus as the markets attempt to stage a rally after a brutal first two weeks to the 2016 trading calendar.
- IPO Troubles: Investors are growing concerned about the stability of companies that recently went public. Shares of Etsy Inc. (Nasdaq: ETSY) hit an all-time low of $6.89 during yesterday's session. The firm continues to see weakness in its industry and is facing increasing pressure from rivals like Amazon.com Inc. (Nasdaq: AMZN). Etsy's new intraday low has drawn comparisons to other tech IPO darlings that have dramatically underperformed. Shares of Twitter Inc. (NYSE: TWTR) and GoPro Inc. (Nasdaq: GPRO) are both hovering near all-time lows, while Fitbit Inc. (NYSE: FIT) is off more than 60% from its August high. Here's a breakdown of why Twitter stock continues to slump.
- Oil Outlook: Crude oil prices rose for the first time in eight sessions after trading below $30 yesterday for the first time since December 2003. February's WTI prices were up 3.4% at $31.49 per barrel. Meanwhile, Brent oil crude – priced in London – added 3.2% to hit $31.86.
Earnings Outlook: SVU, CLC, FUL
- Earnings Report No. 1, SVU: Shares of SUPERVALU Inc. (NYSE: SVU) were in focus this morning after the wholesale distributor reported fiscal third-quarter earnings. The firm reported per-share earnings of $0.16, in line with Wall Street expectations. Its bottom-line revenue was $4.1 billion, slightly below analyst projections.
- Other companies reporting earnings today include CLARCOR Inc. (NYSE: CLC) and HB Fuller Co. (NYSE: FUL).
Stocks to Watch: MSFT, MS, CSX, AAPL, TWX
- Stocks to Watch No. 1, MSFT: Shares of Microsoft Corp. (Nasdaq: MSFT) were up 1.6% in pre-market hours on news Morgan Stanley (NYSE: MS) upgraded the stock from "equal weight" to "overweight." The investment firm said cloud computing profits will push the stock to new heights.
- Stocks to Watch No. 2, CSX: Shares of CSX Corp. (Nasdaq: CSX) slipped 1.8% after the company reported fiscal fourth-quarter earnings of $0.48 per share on top of $2.8 billion in revenue. The company fell short on bottom-line revenue due to falling shipment volumes and a struggling energy sector.
- Stocks to Watch No. 3, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) were back above $100 per share this morning. Rumors are floating around that the technology giant may be interested in purchasing Time Warner Inc. (NYSE: TWX) in a spin-off, according to The New York Post. The article indicates the company plans to launch its own streaming service and could be seeking content or infrastructure to do so.
Today's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- Boston Federal Reserve Bank President Eric Rosengren speaks at 7:45 a.m.
- Atlanta Fed Business Inflation Expectations at 10 a.m.
- EIA Petroleum Status Repor at 10:30 a.m.[
- Chicago Federal Reserve Bank President Charles Evans speaks at 1 p.m.
- 10-Year Note Auction at 1 p.m.
- Beige Book at 2 p.m.
- Treasury Budget at 2 p.m.
What Investors Must Know This Week
- Where We'll Find Our Biggest Profits This Year
- What a Chinese Stock Market Crash Means for Investors
- Your "Buy List" to Profit from Volatility in 2016
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.