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For Feb. 9, 2016, here's the top stock market news and stocks to watch…
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Tuesday) are under pressure – projecting a 125-point decline. The Japanese 10-year bond turned negative for the first time in history. The Nikkei fell by more than 5% as investors continue to lose confidence in the Japanese economy.
Yesterday, the Dow fell 177 points as tech stocks continued to slump and oil prices cratered again on concerns of a global economic downturn. Financial stocks slumped on concerns that the U.S. Federal Reserve will not raise interest rates in the coming months and global exposure to rising debt levels.
- Stock Market Today: On Tuesday, another light economic calendar will place a greater emphasis on today's earnings reports. Economists will keep an eye on the NFIB Small Business Optimism Index, the monthly JOLTS report, and an update on wholesale trade. An improved JOLTS data update could bolster optimism about Friday's unemployment report.
- Glittering Gold: Demand for precious metals is soaring. Gold prices are on course for their longest win streak since 2011 as investors continue to flock to safety. Today would be gold's eighth consecutive winning day. Meanwhile, spot silver prices hit a three-month high overnight.
- Oil Watch: Crude oil prices were on the rise as traders temporarily shrugged off concerns about a global supply glut and economic slowdown in China. WTI crude oil added 0.3% to hit $29.79 per barrel. Meanwhile, Brent crude prices were flat at $32.88 per barrel. The International Energy Agency slashed its global demand growth forecast from a five-year high in 2015.
Earnings Outlook: DIS, KO, PNRA, SCTY, CVS, SAVE, NUAN, REGN, AKAM
- Earnings Report No. 1, DIS: Shares of Walt Disney Co. (NYSE: DIS) are in focus today as the global media and entertainment giant reports Q1 2016 earnings. Wall Street expects that Disney will report earnings per share (EPS) of $1.44 on top of $14.928 billion in revenue. Investors are cautiously optimistic about the outlook. On one hand, strong revenue from "Star Wars: The Force Awakens" offered a boost to the firm's bottom line. However, falling subscribers to its ESPN property are weighing on its cable business.
- Earnings Report No. 2, KO: Shares of Coca-Cola Co. (NYSE: KO) are up 0.3% after the company beat 2015 Q4 earnings by a penny. Wall Street expected that the soda manufacturer would report an EPS of $0.37 on top of $9.858 billion in revenue. Shares have been under pressure as a stronger U.S. dollar and Latin American currency weakness hinder expectations. The global beverage giant earns more than half of its revenue from markets outside of North America.
- Earnings Report No. 3, PNRA: Shares of Panera Bread Co. (Nasdaq: PNRA) are on the move this morning as the casual restaurant prepares to report 2015 Q4 earnings after the bell. Wall Street expects that the firm will report an EPS of $1.37 on top of $695.62 in revenue.
- Additional companies reporting quarterly earnings include Solar City Corp. (Nasdaq: SCTY), CVS Caremark Corp. (NYSE: CVS), Spirit Airlines Inc. (Nasdaq: SAVE), Nuance Communications (Nasdaq: NUAN), Regeneron Pharmaceuticals Inc. (Nasdaq: REGN), and Akamai Technologies Inc. (Nasdaq: AKAM).
Stocks to Watch: CMG, CHK, GPS
- Stocks to Watch No. 1, CMG: Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) are down 0.04% in pre-market activity after the company reopens its stores for the full day. All restaurant chain locations were closed across the country on Monday for a few hours for a national team meeting meant to address health concerns and safety protocols. The firm addressed the cause of its health outbreaks in 2015. First, it blamed sick employees for two norovirus outbreaks, while citing tomatoes as the most probable culprit behind a salmonella outbreak in Minnesota and Wisconsin.
- Stocks to Watch No. 2, CHK: Shares of Chesapeake Energy Corp. (NYSE: CHK) slumped more than 35% on Monday on news that the company has hired a restructuring firm to explore a structural shakeup. Although the nation's second-largest natural gas producer claims that it isn't planning on going into bankruptcy, trading was halted three times today. The firm is set to report 2015 Q4 earnings and its 2015 annual results in two weeks. Here's a breakdown of what happened with CHK stock yesterday.
- Stocks to Watch No. 3, GPS: Shares of Gap Inc. (NYSE: GPS) were up more than 3.3% despite news that the apparel retailer reported a sales decline in January. The firm reported that it expected its full fiscal-year sales will register at the high end of its guidance forecast.
Today's U.S. Economic Calendar (all times EST)
- NFIB Small Business Optimism Index at 6 a.m.
- Redbook at 8:55 a.m.
- JOLTS at 10 a.m.
- Wholesale Trade at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 3-Year Note Auction at 1 p.m
What Investors Must Know This Week
- The $600 Million Signal That Oil Prices Are About to Rise
- How to Prepare for a Global Recession in 2016
- This Easy Investing Strategy Can Lead to 2,426% Profits
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.