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Dow Jones Industrial Average News, 7/20/2016: The Dow Jones continues to rally and has ended six straight sessions at record highs.
Financial stocks are back in focus today in addition to a number of stories putting oil into focus.
While investors are caught up in earnings reports this afternoon, there exists a wealth of other stories and profit opportunities that investors must know this Wednesday morning.
Here is today's top stock market news, stocks to watch, ways to profit, and economic calendar for July 20, 2016.
What's Moving the Dow Jones Industrial Average Today: Deals and Earnings
Dow Jones futures projected a 56-point gain thanks to Morgan Stanley (NYSE: MS). The investment bank reported earnings per share (EPS) of $0.75 in Q2 2016. That topped Wall Street expectations of $0.59. The firm reported stronger than expected profits in its fixed-income and investment-banking units. Later today, we'll get a better understanding of U.S. credit and consumer spending when we hear from American Express Co. (NYSE: AXP).
While all the chatter in the financial sector centers on the surprise earnings from Morgan Stanley and Goldman Sachs Group Inc. (NYSE: GS), this one global bank has attracted the attention of Money Morning Capital Wave Strategist Shah Gilani. In an exclusive report, Gilani explains how this German bank could very well tear down the global economy, and there's plenty of evidence to back it up.
In deal news, international agricultural giant Monsanto Co. (NYSE: MON) has rejected the latest bid from German chemical giant Bayer AG (OTCMKTS ADR: BAYRY). The latest bid was set at roughly $65 billion. Monsanto said that the offer undervalued the biotech seed giant, but they were open to further negotiations in the near future. MON stock was up 0.6% this morning.
Tech stocks are in focus thanks to a weak report by Netflix Inc. (Nasdaq: NFLX). The streaming giant reported weaker than expected subscriber growth. The stock fell more than 13% yesterday, but was showing modest gains in pre-market hours. Our tech specialist Michael Robinson believes companies are facing choppy conditions as the Dow and the S&P 500 hover near record highs. Michael explains how to build wealth in tech stocks in any market condition.
The Republican National Convention continues today in Cleveland, Ohio. Last night, the RNC officially nominated Donald Trump as its candidate in the 2016 election. Trump will accept the nomination on July 21, the final day of the convention.
In other "Republican" news, FOX News Channel Chairman Roger Ailes in in discussions to depart Twemty-First Century Fox Inc. (Nasdaq: FOX) after an investigation into ongoing reports of sexual harassment. Ailes founded FOX News in the 1990s and shaped a channel that dramatically changed the social, political, and cultural slants of 24-hour news channels and society at large.
Oil prices were flat this morning as investors prepare for a weekly inventory report from the U.S. Energy Information Administration. If the EIA announces a decline in inventories, this would be the ninth consecutive week that domestic crude levels have declined.
WTI crude oil prices were up 1.0%, while Brent crude oil prices added 1.1%. But while the mainstream press talks about WTI and Brent every trading session, they're missing the bigger picture about where global demand and international energy finance is heading. This country has become a behemoth in the crude markets and will shape the markets in the future. And no, it's not China.
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
- Shares of Microsoft Corp. (Nasdaq: MSFT) rallied at least 4% in pre-market hours after the company topped Q4 earnings expectations. The firm reported stronger than expected earnings thanks to a boost in its cloud-based business. The firm reported EPS of $0.69, topping expectations for $0.58. Revenue also beat slightly, coming in at $22.64 billion. The consensus forecast was for sales of $22.2 billion. The firm announced that it experienced a 7% gain in its cloud-computing business, and that's likely just the beginning. So, is MSFT a buy right now? We break down the performance of MSFT stock, right here.
- Shares of Lockheed Martin Corp. (NYSE: LMT) reported better than expected earnings in the second quarter, especially considering the delayed rollout of its new F-35 fighter jet. If you're thinking about adding LMT to your portfolio, read this first.
- Shares of Valeant Pharmaceuticals International Inc. (NYSE: VRX) are up more than 4.1% after the firm received approval from the FDA for Relistor. Even though the company has received an uptick in price over the last few days and has risen 25% since hitting its 52-week low recently, we still warn investors that this company remains under significant financial stress. Here's more on what you need to know about VRX stock.
- Look out for additional earnings reports from eBay Inc. (Nasdaq: EBAY), Qualcomm Inc. (Nasdaq: QCOM), Intel Corp. (Nasdaq: INTC), F5 Networks Inc. (Nasdaq: FFIV), Mattel Inc. (Nasdaq: MAT), Abbott Laboratories (NYSE: ABT), and Canadian Pacific Railroad Ltd. (USA) (NYSE: CP).
Today's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- EIA Petroleum Status Report at 10:30 a.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.