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Dow Jones Industrial Average News, 7/22/2016: A string of bad earnings reports and weak outlooks came from firms like Southwest Airlines Co. (NYSE: LUV) and Intel Corp. (Nasdaq: INTC), halting any major gains for the market as a whole.
Friday's trading session is expected to bring back an old friend into the daytime discussion: the U.S. Federal Reserve.
The Fed will meet next week to discuss monetary policy, and we'll await the next reason why the central bank won't raise interest rates. But the Fed being unable to raise rates is just one of the reasons we could still see a stock market crash in July.
Yesterday, markets fell more than 79 points after the global markets were refused another round of stimulus from the European Central Bank and the Bank of Japan.
Here is today's top stock market news, stocks to watch, ways to profit, and economic calendar for July 22, 2016.
What's Moving the Dow Jones Industrial Average Today: Earnings and PMI
Dow Jones futures projected a 24-point gain Friday as investors await a critical update to the PMI Manufacturing Index (PMI) and another round of earnings.
The U.S. Federal Reserve is back in focus as the FOMC Conference kicks off next week. Policymakers will meet to discuss the timing of the next interest rate increase. Although the Fed has said it wants at least two more hikes by the end of 2016, it's becoming clear that won't happen. Even investment bank Morgan Stanley (NYSE: MS) says we shouldn't expect a rate hike. In fact, MS believes that rates will remain unchanged until 2018. That could have serious consequences if you have a checking or savings account. Here's how to protect your money and your portfolio from the Fed's sluggish action on interest rates.
The Republican National Convention ended last night in Cleveland, Ohio. Donald Trump formally accepted the nomination. In what has been called a "dark speech," Trump painted a picture of lawlessness around the nation, and argued that the legacy of Hillary Clinton is "death, destruction, terrorism, and weakness." There's no doubt that Trump is controversial, but there's a big problem with his presidency most people are overlooking. You see, global economies need dramatic structural reforms to improve long-term health and promote growth. The problem is that many leaders of G20 countries will spend more time complaining about Trump than actually fixing their economies.
Elon Musk has released his latest plan for Tesla Motors Inc. (Nasdaq: TSLA). Markets are calling this investor report Musk's "Master Plan Part 2." The plan breaks down four major themes for the company's future: solar, vehicles, autonomy, and sharing. It's a major statement for the company, and it's a great long-term buy for investors willing to take the risk. Here's all you need to know about TSLA stock.
Oil prices were up slightly, despite news that traders are expecting an increased global glut. According to reports, Iraq is expected to increase supply and exports in July. WTI crude oil prices added 0.4%, while Brent crude oil prices gained 0.5%.
Money Morning Global Energy Strategist Dr. Kent Moors argues that sliding oil prices are setting up a profitable investment opportunity for the long term.
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 earnings news, General Electric Co. (NYSE: GE) beat Wall Street earnings expectations. The firm reported adjusted earnings per share of $0.51 in Q2, beating analyst calls of $0.46. The firm also saw quarterly revenue jump by 15% over the same period last year. Despite the news, the company's stock was off 2.1% in pre-market hours as concerns about future orders are weighing the firm's outlook.
- Airline stocks are back in focus after American Airlines Group Inc. (Nasdaq: AAL) topped Wall Street earnings expectations. The company said that it benefited from aggressive cost-cutting plans. Still, the stock fell another 0.7%, weighed on broader concerns about the airline industry. Yesterday, shares of Southwest Airlines Co. (NYSE: LUV) fell 11% after the firm missed earnings and revenue expectations. That report dragged down shares of AAL, Delta Air Lines Inc. (NYSE: DAL), and United Continental Holdings Inc. (NYSE: UAL).
- Shares of Paypal Holdings Inc. (Nasdaq: PYPL) fell roughly 5% after the company reported earnings that met the expectations of Wall Street. Meanwhile, the firm announced a partnership with Visa Inc. (NYSE: V) that will see Visa credit cards as a leading form of payment accepted on the PayPal platform.
- Shares of chipmaker Advanced Micro Devices Inc. (Nasdaq: AMD) rallied more than 9% after the firm topped earnings expectations.
- Look out for additional earnings reports from Honeywell International Inc. (NYSE: HON), VF Corp. (NYSE: VFC), Whirlpool Corp. (NYSE: WHR), Moody's Corp. (NYSE: MCO), SunTrust Banks Inc. (NYSE: STI), and Synchrony Financial (NYSE: SYF).
Today's U.S. Economic Calendar (all times EDT)
- PMI Manufacturing Index Flash at 9:45 a.m.
- Baker Hughes Inc. (NYSE: BHI) Rig Count at 1 p.m.
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.