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Dow Jones Industrial Average News, 7/11/2016: Monday's trading session unofficially kicks off earnings season, and it could be a very turbulent week.
That's because – with the Dow Jones Industrial Average sitting near a record high – banking institutions are poised to report earnings in the wake of Britain's vote to depart the European Union.
While quarterly earnings could top expectations, investors will be looking forward to guidance outlooks and insight on the impact of the Brexit in the future.
Lookout for earnings from JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C), and Wells Fargo & Co. (NYSE: WFC). In addition, it will be a big week for BlackRock Inc. (NYSE: BLK) and PNC Financial Group Services Inc. (NYSE: PNC).
But as everyone else starts looking for updates from banking stocks, there are a number of key stories that investors need to know about before opening bell.
Investors need to know that financial stocks are under massive pressure, and Money Morning Global Credit Strategist Michael Lewitt argues that investors need to prepare for a global crash.
Here is today's top stock market news, stocks to watch, ways to profit, and economic calendar for July 11, 2016.
What's Moving the Dow Jones Industrial Average Today
Dow Jones futures projected a 73-point gain as the Dow Jones targets an all-time record on Monday. This morning, markets are rallying after the Japanese Nikkei surged roughly 4% earlier in the day. Investors anticipate that the Bank of Japan is on the verge of another round of financial stimulus. But Japan's negative interest rate policies could have dire long-term consequences for the global markets. Find out more here.
Markets are holding on after Friday's 250-point rally. On Friday, markets surged after the U.S. Commerce Department announced the nation created 287,000 "new jobs" in June. The report suggests that that May's dismal jobs figure was largely a one-off event.
Crude oil prices were sliding over concerns due to falling demand in Asia. Meanwhile, markets are seeing a $15 discount on Canadian crude prices as production increases and fails to find space in available pipelines. WTI crude prices were down 0.7% to $45.09 per barrel, while Brent crude prices were off 0.7% to $46.42 per barrel.
On Friday, Baker Hughes Inc. (NYSE: BHI) announced that its rig count saw its fifth-straight weekly increase. The United States added 10 rigs, bringing the national total to 351.
Now here's your list of top stocks to watch in today's market, plus today's economic calendar:
Companies to Watch in the Stock Market Today
- In deal news, Kinder Morgan Inc. (NYSE: KMI) announced plans to sell a stake in its massive natural-gas pipeline system to customer Southern Co. (NYSE: SO) for $1.47 billion. The deal comes as Kinder attempts to reduce its large debt load.
- Tesla Motors Inc. (Nasdaq: TSLA) shares are up 1.7% after CEO Elon Musk said over the weekend that he is preparing for his company's second "master plan." In a tweet on Sunday, Musk wrote, "Working on Top Secret Tesla Masterplan, Part 2. Hoping to publish later this week."
- Shares of Twitter Inc. (NYSE: TWTR) were off 2.1% after the stock was downgraded from "Buy" to "Neutral" by SunTrust Banks Inc. (NYSE: STI). The financial institution raised concerns about the social media group's user growth and advertising model.
- Amazon.com Inc. (Nasdaq: AMZN) is in focus as the company prepares for tomorrow's big Prime Day. It is the second anniversary of the company's shopping holiday. Its rival Wal-Mart Stores Inc. (NYSE: WMT) has announced that online shoppers can receive free shipping over the next five days in order to compete with Amazon. AMZN stock started to climb after last Prime Day, so is it worth adding it to your portfolio now? Here's everything you need to know.
- Earnings season unofficially kicks off today with the release of the fiscal second-quarter report by alumina giant Alcoa Inc. (NYSE: AA) after the bell. Analysts anticipated that Alcoa would see a decline in earnings for the fourth-straight quarter.
- It's not often that investors should speculate about takeover targets. It's better to invest in strong companies with good cash flow and access to international markets. If that company just happens to be a takeover target, then that is an added bonus. But today's company doesn't just have all of these qualities. This company might solve world hunger someday. Learn how to profit from "The Big Feed."
Today's U.S. Economic Calendar (all times EDT)
- Kansas City Federal Reserve Bank President Esther George speaks at 10 a.m.
- Labor Market Conditions Index at 10 a.m.
- 4-Week Bill Announcement at 11 a.m.
- 3-Month Bill Auction at 11:30 a.m.
- 6-Month Bill Auction at 11:30 a.m.
- 3-Year Note Auction at 1:00 p.m.
- Cleveland Federal Reserve Bank President Loretta Mester speaks at 9:30 p.m.
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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.