For Jan. 20, 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 292-point decline after Asian markets slumped again and oil prices continued to decline to 2003 levels. The Shanghai Composite Index was again off more than 1%, while the Hong Kong Index fell to a four-year low. Money Morning Capital Wave Specialist Shah Gilani forecast this market turmoil back in August and says that more mayhem is on the way this week and in the months ahead.
Yesterday, the Dow Jones Industrial Average gained 27 points, despite falling energy stocks and weakening oil prices. A busy day of earnings reports was overshadowed by economic data from China.
Top News in the Stock Market Today
- The Stock Market Today: On Wednesday, domestic markets will keep an eye on monthly updates to the Consumer Price Index, housing starts, and MBA mortgage applications.
- Oil Outlook: Oil prices fell again as concerns about a global glut in crude supplies weighted on traders' sentiment. February WTI prices fell 2.5% to reach $27.65 per barrel. Meanwhile, Brent crude oil – priced in London – was down 2.4% at $28.07. Yesterday, the International Energy Agency issued a warning that industrialized nations might "drown in oversupply" this year. Iran has forecast that it will provide an additional 500,000 barrels per day to global production levels as it ramps up export operations following the removal of UN sanctions last weekend.
Earnings Outlook: GS, FFIV, XLNX, KMI, AMTD, EAT
- Earnings Report No. 1, GS: Before the bell, shares of Goldman Sachs Group Inc. (NYSE: GS) fell 1.6% after reporting fiscal fourth-quarter earnings. The firm reported a 72% decline in quarterly profits. Wall Street analysts projected per-share earnings of $3.79 on top of $7.2 billion in revenue.
- Earnings Report No. 2, FFIV: Shares of F5 Networks Inc. (Nasdaq: FFIV) will be in focus when the company reports fiscal first-quarter earnings. Analysts project the firm will report an EPS of $1.60 on top of $485.3 million in earnings.
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- Additional companies reporting quarterly earnings include Xilinx Inc. (Nasdaq: XLNX), Kinder Morgan Inc. (NYSE: KMI), TD Ameritrade Holding Corp. (Nasdaq: AMTD), Brinker International Inc. (NYSE: EAT), and Match Group Inc. (Nasdaq: MTCH).
Stocks to Watch: NFLX, TWTR, AAPL, IBM, ATML, MCHP, DLG
- Stocks to Watch No. 1, NFLX: Shares of Netflix Inc. (Nasdaq: NFLX) were up nearly 2% in pre-market hours after the streaming giant crushed earnings estimates and reported a massive surge in new subscriptions. The company said it now has 74.8 million subscribers and projects it will pick up another 6.1 million new customers by March. Recently, the firm announced it was expanding into another 130 countries and is currently exploring ways to branch into China. So, should you buy NFLX stock after its fourth-quarter earnings report? We answer that question, right here.
- Stocks to Watch No. 2, TWTR: Shares of Twitter Inc. (NYSE: TWTR) fell to a new all-time low in pre-market hours after the micro-blogging giant experienced a service outage. It's increasingly obvious that CEO Jack Dorsey's return to the helm has failed to revive the company's stock. Here's a breakdown of what to expect next for Twitter stock.
- Stocks to Watch No. 3, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) are under pressure after Amnesty International accused the tech giant and several auto makers of using batteries that might contain cobalt mined by children as young as seven in the Democratic Republic of the Congo. Shares are down 1.8% in pre-market hours.
- Stocks to Watch No. 4, IBM: Shares of International Business Machines Corp. (NYSE: IBM) fell 6% in post-market hours after the company announced revenue declined for the 15th straight quarter. Overall revenue was down quarter over quarter by 9%. The company still matched full-year revenue expectations of $81.7 billion.
- Stocks to Watch No. 5, ATML: Shares of Atmel Corp. (Nasdaq: ATML) were on the rise after the company agreed to sell itself to Microchip Technology Inc. (Nasdaq: MCHP) for roughly $3.6 billion. The cash-and-stock deal ends a bidding war between Microchip Technology and rival Dialog Semiconductor Plc.
Today's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- Consumer Price Index at 8:30 a.m.
- Housing Starts at 8:30 a.m.
- Redbook at 8:55 a.m.
- 4-Week Bill Auction at 11:30 a.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.