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For Jan. 14, 2016, here's the top stock market news and stocks to watch…
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Thursday) forecast an 87-point gain as traders react to a terrorist attack in Jakarta and Asian shares sliding thanks to ongoing declines in oil prices. This morning, investment banks will report quarterly earnings, but one big name has already signaled struggles ahead. Yesterday, Goldman Sachs Group Inc. (NYSE: GS) announced plans to slash 10% of its sales and fixed-income team.
Yesterday, the Dow Jones Industrial Average cratered more than 364 points as oil prices fell again and technology stocks faltered. Shares of five companies – Home Depot Inc. (NYSE: HD), Goldman Sachs Group Inc. (NYSE: GS), Boeing Co. (NYSE: BA), Walt Disney Co. (NYSE: DIS), and UnitedHealth Group Inc. (NYSE: UNH) – accounted for half of the Dow's drop. Meanwhile, the S&P 500 slumped 2.5% and crashed through the important mental barrier of 1,900 for the first time since October.
Top News in the Stock Market Today
- The Stock Market Today: A busy economic calendar features an update on weekly jobless claims, monthly trade data, and a speech from St. Louis Fed Reserve Bank President James Bullard. Markets are likely to focus on the terror attacks in Jakarta.
- Oil Outlook: Oil prices slipped to a 12-year low as the global markets prepare for Iran to bring its production back online to the export markets. Saudi Arabia recently cut ties with the nation and remains committed to full production and low prices as proxy wars tear apart regions of the Middle East. February WTI prices gained 1.1% to reach $30.83 per barrel. Meanwhile, Brent oil crude added 1.4% at $30.75.
Earnings Outlook: JPM, INTC, SJR
- Earnings Report No. 1, JPM: Shares of JPMorgan Chase & Co. (NYSE: JPM) added more than 2% as the megabank prepares to report fiscal fourth-quarter earnings. Jamie Dimon's firm reported an EPS of $1.32, besting estimates and setting positive momentum for the financial sector in the wake of the U.S. Federal Reserve's first interest rate hike since 2006. Wall Street analysts expected the firm would report an EPS of $1.29 on top of $23.095 billion in revenue.
- Earnings Report No. 2, INTC: Later this afternoon, technology giant Intel Corp. (Nasdaq: INTC) will report fourth-quarter earnings. Wall Street expects the company will report per-share earnings of $0.63 on top of $14.084 billion in revenue. INTC stock was up 0.6% in pre-market hours.
- Earnings Report No. 3, SJR: After the bell, Shaw Communications Inc. (NYSE: SJR) will report fiscal first-quarter earnings. Consensus expectations call for the publishing giant to report an EPS of $0.35 on top of $.1029 billion in revenue.
Stocks to Watch: GM, GE, GPRO, ETSY, TWTR
- Stocks to Watch No. 1, GM: Look for U.S. automakers to boost shareholder value by returning retained earnings to investors. The expectation comes on news that the domestic auto demand is under pressure. On Wednesday, General Motors Co. (NYSE: GM) announced plans to hike its buyback program by another $4 billion. The deal will place increased pressure on rivals Ford Motor Co. (NYSE: F) and Fiat Chrysler Automobiles NV (NYSE: FCAU) to follow suit.
- Stocks to Watch No. 2, GE: Shares of General Electric Co. (NYSE: GE) are in focus on news that the company will relocate its headquarters from Fairfield, Conn. to Boston, Mass. The company says that it is relocating in order to tap the city's "tech talent" and to emphasize its digital capabilities. But everyone knows that the decision came down to money. The city offered the firm a property tax relief package worth $25 million and could provide up to $120 million in other incentives that include grants, infrastructure projects, and aid in associated real estate costs.
- Stocks to Watch No. 3, GPRO: The bloodbath for 2015 tech IPOs continued on Wednesday, and the pain could get worse as the year progresses. Shares of GoPro Inc. (Nasdaq: GPRO) hit a new all-time low – falling 25% in post-market hours before being halted – after announcing plans to slash its workforce by roughly 7% and issuing weaker than expected guidance for its fourth-quarter report. Meanwhile, shares of Twitter Inc. (Nasdaq: TWTR) and Etsy Inc. (Nasdaq: ETSY) also hit all-time lows as the market rout continues.
Today's U.S. Economic Calendar (all times EST)
- Louis Federal Reserve Bank President James Bullard speaks at 8:15 a.m.
- Jobless Claims at 8:30 a.m.
- Import and Export Prices at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 10-Year TIPS Announcement at 11 a.m.
- 30-Year Bond Auction at 1 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 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.