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Dow Jones Industrial Average News, 8/11/2016: It's been a quiet week on Wall Street due to a weak economic calendar and tepid earnings reports.
But Thursday could break that trend after a strong earnings report from Alibaba Group Holding Ltd. (NYSE: BABA).
While the media this morning is in a frenzy about the 2016 presidential election and people climbing towers in New York, we will identify several profit opportunities for you.
Let's get to today's top stock market news, stocks to watch, ways to profit, and economic calendar for Aug. 11, 2016.
What's Moving the Dow Jones Industrial Average Today: BABA Earnings Beat
Dow Jones futures gained more than 44 points as traders eye retail earnings and employment data.
This week features no speeches by members of the U.S. Federal Reserve. Still, ongoing concerns about falling interest rates around the globe have investors wondering when the U.S. central bank will raise interest rates. Fed Chair Janet Yellen is not scheduled to speak again until an annual conference in Jackson Hole on Aug. 26.
Crude oil prices were falling on news that Saudi Arabia is pumping oil at record levels. The Kingdom produced more than 10.67 million barrels per day in July. Falling prices have boosted speculation that the Organization of Petroleum Exporting Countries (OPEC) will reduce production. WTI prices were off 0.6%, while Brent crude oil was off 0.3%.
The global oil cartel has announced plans to meet in September. We've seen this drama before. Last year, Saudi Arabia was working to lead an agreement among OPEC producers to lower its production targets. However, Iran – a growing political threat to Saudi Arabia in the region – has refused to cut its production as the nation returns to the global oil markets. Iran had been prevented from bringing crude to the global markets due to economic sanctions related to its nuclear program.
In deal news, shares of Chesapeake Energy Corp. (NYSE: CHK) are up more than 6% on news that the company plans to sell its Barnett shale property in Texas to a private-equity firm. Chesapeake is also renegotiating a contract with Williams Companies Inc. (NYSE: WMB). The two deals are set to save Chesapeake about $1.9 billion in future costs.
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, shares of Alibaba gained more than 4.6% in pre-market hours after China's largest e-commerce giant reported a 59% gain in quarterly revenue. The company said that mobile revenue increased by a staggering 119% over the quarter, while its mobile user base surged by nearly 40%. The positive earnings report pushed up shares of Yahoo! Inc. (Nasdaq: YHOO) – which owns a stake in BABA stock – by more than 2%.
- Shares of Valeant Pharmaceuticals International Inc. (NYSE: VRX) fell more than 10% on news that the company is now under criminal investigation. Federal investigators are exploring the company's link to the defunct mail-order pharmacy Philidor and whether the firms engaged in fraud with insurance companies. VRX shares are off nearly 90% in the last 12 months. Money Morning Global Credit Strategist Michael Lewitt has provided incredible success for our readers with his short recommendations of VRX stock. Despite today's announcement, the company is actually in even worse shape than before the criminal investigation started. Here's why VRX stock is headed even lower in the months ahead.
- Shares of Shake Shack Inc. (NYSE: SHAK) fell more than 10% after the company reported earnings on Wednesday afternoon. Even though the company beat quarterly earnings, investors sold off shares due to concerns about falling same-store growth.
- Look for additional earnings reports from NVIDIA Corp. (Nasdaq: NVDA), Macy's Inc. (NYSE: M), Nordstrom (NYSE: JWN), Kohl's Corp. (NYSE: KSS), Ruby Tuesday Inc. (NYSE: RT), and Sunrun Inc. (Nasdaq: RUN).
Today's U.S. Economic Calendar (all times EDT)
- Jobless Claims at 8:30 a.m.
- Import and Export Prices at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- EIA Natural Gas Report at 10:30 a.m.
- 3-Month Bill Announcement at 11 a.m.
- 6-Month Bill Announcement at 11 a.m.
- 52-Week Bill Announcement at 11 a.m.
- 5-Year TIPS Announcement at 11 a.m.
- 30-Year Bond Auction at 1 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 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.