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For Feb. 10, 2016, here's the top stock market news and stocks to watch…
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Wednesday) surged 125 points as traders eye the release of a statement from U.S. Federal Reserve Chairwoman Janet Yellen on the state of monetary policy.
Yesterday, the Dow Jones slipped 12 points as oil prices fell on supply concerns and traders prepared for Yellen's appearance before Congress. The markets received a late-session boost from biotech stocks after the Nasdaq Biotech Index added 0.1%. Shares of both Gilead Sciences Inc. (Nasdaq: GILD) and Allergan Plc. (NYSE: AGN) gained 2.3%.
Top News in the Stock Market Today
- Stock Market Today: Fed Chairwoman Janet Yellen will present the central bank's semi-annual monetary report to the House Financial Services Committee today and tomorrow (Thursday). Later in the morning, expect the monthly petroleum status report from the U.S. Energy Information Administration.
- Fed Focus: Yellen will testify before the House of Representatives and defend the central bank's December rate hike, the first since 2006. Over the next two days, Congress is expected to ask questions about the health of the U.S. economy and whether the nation is strong enough to handle the recent rate hike.
- Oil Watch: Crude oil prices stabilized as investors anticipate a large buildup in domestic crude inventories. WTI crude oil – priced in New York – was down 0.1% to hit $27.91 per barrel. Meanwhile, Brent crude – priced in London – added 0.4% to hit $30.44 per barrel.
Earnings Outlook: TWTR, CSCO, BIDU, TSLA, WFM, ZNGA, EXPE, HUM, TWX, FLO
- Earnings Report No. 1, TWTR: Microblogging giant Twitter Inc. (NYSE: TWTR) will report fiscal fourth-quarter earnings after the bell today. Wall Street has relatively low expectations for the firm – an EPS figure of $0.12 on top of $709 million in revenue.
- Earnings Report No. 2, TSLA: Shares of Tesla Motors Inc. (Nasdaq: TSLA) are in focus this afternoon when the company reports fourth-quarter earnings after the bell. Wall Street expects the electric vehicle manufacturer to report an EPS of $0.08 on top of $1.8 billion in revenue.
- Additional companies reporting quarterly earnings include Cisco Systems Inc. (Nasdaq: CSCO), Whole Foods Market Inc. (Nasdaq: WFM), Zynga Inc. (Nasdaq: ZNGA), Expedia Inc. (Nasdaq: EXPE), Humana Inc. (NYSE: HUM), Time Warner Inc. (NYSE: TWX), and Flowers Foods Inc. (NYSE: FLO).
Stocks to Watch: DIS, SCTY, DB
- Stocks to Watch No. 1, DIS: Shares of Walt Disney Co. (NYSE: DIS) slipped more than 4.8% despite news the company reported its highest quarterly earnings in company history. The entertainment giant announced strong revenue on the back of its recent "Star Wars" film. However, concerns about falling subscriber numbers at ESPN are weighing on investor sentiment.
- Stocks to Watch No. 2, SCTY: Shares of SolarCity Corp. (Nasdaq: SCTY) cratered more than 29% after the company reported an unexpected loss in the first quarter and announced that installations were well short of the target forecast. The firm deployed 272 megawatts over the fourth quarter. That's below its forecast of 280 to 300 MW.
- Stocks to Watch No. 3, DB: Shares of Deutsche Bank AG (NYSE: DB) gained 5.8% as the company's co-CEO John Cryan attempts to reassure global investors that the German bank is stable. Despite this morning's gains, the markets continue to worry about the firm's exposure to the global oil downturn and cash flow woes. Deutsche Bank is off more than 37% over the last year.
Today's U.S. Economic Calendar (all times EST)
- MBA Mortgage Applications at 7 a.m.
- Federal Reserve Chair Janet Yellen speaks at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 10-Year Note Auction at 1 p.m.
- San Francisco Federal Reserve Bank President John Williams speaks at 1:30 p.m.
- Treasury Budget at 2 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
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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.