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For Feb. 3, 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 three-point gain ahead of another busy day of data and earnings reports.
Yesterday, the Dow Jones Industrial Average slipped 295 points as oil prices slumped and earnings reports remained mixed. As earnings season kicks into gear, growing concern about a recession has become a primary theme of executive communications. According to Thomson Reuters data, at least 92 companies have raised the prospect of an economic recession hitting the United States this year. That's a 33% increase compared to data from the previous year.
Top News in the Stock Market Today
- The Stock Market Today: Investors will keep an eye on weekly jobless claims, the weekly petroleum status report from the U.S. Energy Information Administration, and a busy day of earnings reports. In addition, keep an eye on the PMI services and the ISM non-manufacturing reports. Strong reports would indicate improving domestic consumption, the cornerstone of economic growth.
- IPO 2016: The sharp January downturn for the markets spooked a number of companies away from engaging in initial public offerings. But the first IPO of 2016 is finally on tap, and investors may swoop in as they look for new opportunities. Editas Medicine Inc. (Nasdaq: EDIT) announced yesterday that it will price 5.9 million shares at $16 each. The Massachusetts-based firm treats genetic-based diseases by editing gene sequences.
- Oil Watch: Crude oil prices jumped this morning on hopes that the EIA will report a weekly supply drop. WTI crude oil - priced in New York - added 1.0% to hit $30.19 per barrel. Meanwhile, Brent crude - priced in London - gained 1.4% to hit $33.17 per barrel.
Earnings Outlook: GPRO, BWLD, YUM, GM, MRK, ATW, CMCSA, MET
- Earnings Report No. 1, GPRO: GoPro Inc. (Nasdaq: GPRO) will release fourth-quarter earnings after the bell today. Wall Street analysts project the camera maker to report an EPS of $0.10 on top of $434.9 million in revenue.
- Earnings Report No. 2, GM: Shares of General Motors Co. (NYSE: GM) are up 0.5% this morning after the automotive giant reported mixed quarterly earnings. Wall Street expectations called for per-share earnings of $1.24 on top of $37.9 billion in revenue.
- Earnings Report No. 3, CMCSA: Shares of Comcast Corp. (Nasdaq: CMCSA) are moving this morning after the cable giant announced quarterly earnings. Wall Street analysts had projected per-share earnings of $0.82 on top of $18.970 billion in revenue.
- Additional companies reporting quarterly earnings include Yum! Brands Inc. (NYSE: YUM), Buffalo Wild Wings (Nasdaq: BWLD), Merck & Co. Inc. (NYSE: MRK), MetLife Inc. (NYSE: MET), and Atwood Oceanics Inc. (NYSE: ATW).
Stocks to Watch: YHOO, CMG
- Stocks to Watch No. 1, YHOO: Shares of Yahoo! Inc. (Nasdaq: YHOO) fell another 1.5% in pre-market hours after the company announced plans to slash 15% of its workforce in an effort to cut costs. Here is all you need to know about the Yahoo earnings report and why CEO Marissa Mayer could be headed for the exit.
- Stocks to Watch No. 2, CMG: Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) slipped more than 6% in pre-market hours after the company announced its first-ever quarterly sales decline since its IPO in 2006. The company's bottom line was affected by the public relations disaster tied to the food poisoning outbreak. Chipotle executives also said a federal criminal probe into a food-safety problem at one of its California locations has expanded into a national investigation. CMG stock fell roughly 36% in January and more pain could be coming for the casual dining company.
Today's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- ADP Employment Report at 8:15 a.m.
- Gallup U.S. Job Creation Index at 8:30 a.m.
- Treasury Refunding Announcement at 8:30 a.m.
- 3-Year Note Announcement at 8:30 a.m.
- 10-Year Note Announcement at 8:30 a.m.
- 30-Year Bond Announcement at 8:30 a.m.
- PMI Services Index at 9:45 a.m.
- ISM Non-Manufacturing Index at 10 a.m.
- EIA Petroleum Status Report at 10:30 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.