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For Feb. 12, 2016, here's the top stock market news and stocks to watch…
Stock Futures Today
Futures for the Dow Jones Industrial Average today (Friday) forecast a 94-point gain as oil prices rose sharply. Crude prices are still down for the week, but optimism is growing that multiple OPEC and non-OPEC nations are coordinating to reduce production.
Yesterday, the Dow Jones lost more than 254 points thanks to another broad sell-off and concerns about global economic growth. Shares of Boeing Co. (NYSE:BA) fell 6.8% after regulators announced they are looking into the company's accounting practices. The stock's downturn accounted for roughly 25% of the Dow Jones' decline on the day.
Top News in the Stock Market Today
- The Stock Market Today: Watch for two speeches by members of the U.S. Federal Reserve – Rob Kaplan and William Dudley. In addition, retail stocks will be in focus with the release of monthly sales figures. Finally, look for an update on import and export prices, consumer sentiment, and business inventories.
- Oil Watch: Crude oil prices closed at their lowest level since May 6, 2003, on Thursday, despite The Wall Street Journal reporting OPEC is considering a proposal to reduce output. The report cited comments from UAE Energy Minister Suhail Mohammed Faraj Al Mazrouei that falling crude prices have forced non-OPEC members to cap production levels. This morning, WTI crude oil added 4.8% to hit $27.46 per barrel. Meanwhile, Brent crude gained 4% to hit $31.27 per barrel.
Earnings Outlook: RRGB, ITT, XRAY, IPGP, LPNT, MT
- Earnings Report No. 1, RRGB: Shares of Red Robin Gourmet Burgers Inc. (Nasdaq: RRGB) are on the move this morning as the company reports fiscal fourth-quarter earnings. The fast-food chain is expected to report per-share earnings of $0.80 on top of $287.47 million in revenue.
- Earnings Report No. 2, ITT: Shares of ITT Corp. (NYSE: ITT) are up 1.8% this morning as the company reports fiscal fourth-quarter earnings. The firm beat Wall Street analysts' expectations of an EPS of $0.55 by $0.03. The firm also easily beat bottom-line expectations of $635.99 million in revenue. Still, the stock weighed on news that ITT's 2016 forecast was underwhelming as the company faces macroeconomic challenges.
- Additional companies reporting quarterly earnings include DENTSPLY International Inc. (Nasdaq: XRAY), IPG Photonics Corp. (Nasdaq: IPGP), LifePoint Health Inc. (Nasdaq: LPNT), and ArcelorMittal SA (NYSE ADR: MT).
Stocks to Watch: P, YHOO, AMZN, AIG, JPM, AMZN
- Stocks to Watch No. 1, P: Shares of Pandora Media Inc. (NYSE: P) added another 3% on news the company is exploring a sale of itself. According to a report in The New York Times, potential suitors include Yahoo! Inc. (Nasdaq: YHOO), Hulu, and Amazon.com Inc. (Nasdaq: AMZN). Pandora stock was up 8.4% on Thursday.
- Stocks to Watch No. 2, AIG: Shares of American International Group Inc. (NYSE: AIG) are up nearly 1% this morning after the global insurance company has reached a deal with activist hedge fund manager Carl Icahn. The firm will put billionaire John Paulson on its board of directors. The company also announced plans to boost its buyback program and quarterly dividend.
- Stocks to Watch No. 3, JPM: In a surprising announcement, banking chief Jamie Dimon said he has purchased $25 million in shares of his firm JPMorgan Chase & Co. (NYSE: JPM). Dimon bought 500,000 JPM shares, according to a filing with the U.S. Securities and Exchange Commission. The purchase is part of a broader effort to instill confidence in the company's stock, which is off nearly 20% in 2016. JPM shares were up 3.5%.
- Stocks to Watch No. 4, AMZN: Market volatility isn't holding back the stock price of Amazon.com Inc. (Nasdaq: AMZN). On Wednesday, the company's board of approved a $5 billion Amazon stock buyback program. That's driving Amazon's stock price higher by 1% this morning.
Today's U.S. Economic Calendar (all times EST)
- Retail Sales at 8:30 a.m.
- Import and Export Prices at 8:30 a.m.
- Dallas Federal Reserve Bank President Rob Kaplan speaks at 9:45 a.m.
- Business Inventories at 10 a.m.
- New York Federal Reserve William Dudley speaks at 10 a.m.
- Consumer Sentiment at 10 a.m.
- Baker-Hughes Rig Count 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.