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This morning, the Dow Jones Industrial Average was pushing higher in pre-market hours as investors prepared for a busy day of economic data.
First up, traders will be scanning the weekly jobless reports for clues into the September unemployment report, which will be released on Friday.
Last night, the Vice Presidential Candidate Debate featured Mike Pence and Tim Kaine.
According to polls, Pence won the debate on style and substance. Unfortunately, this debate and the other debates between Donald Trump and Hillary Clinton aren't providing much insight into the candidates' understanding of the economy and the stock market.
Money Morning Global Credit Strategist Michael Lewitt says that everyone involved in this election has little understanding of our reckless economic policies.
Here's Lewitt's latest warning and what you need to do to protect your money.
On Tuesday, the Dow slumped more than 85 points as concerns over the Brexit sent the U.S. dollar surging and gold prices down more than 3%.
Tuesday's Stock Market Numbers:
Dow Jones: 18,168.72; -85.13; -0.47%
S&P 500: 2,150.50; -10.70; -0.50%
Nasdaq: 5,289.66; -11.22; -0.21%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 25-point gain as investors weighed a security scandal at one of the largest U.S. tech firms. Several big firms are also prepared to report quarterly earnings. The markets will try to beat back concerns that the European Central Bank is shifting to a scenario where it may tighten monetary policy.
Oil prices hit their highest levels since June as traders anticipate another weekly decline in U.S. crude inventories. Yesterday, industry trade group the American Petroleum Institute said that domestic crude supplies fell by 7.6 million barrels. The U.S. Energy Information Administration will officially report weekly inventories later this afternoon. A sharp decline in crude inventories would help alleviate ongoing concerns about a global supply glut.
The WTI crude oil price today added 1.8%. The Brent crude oil price gained 1.9%.
In deal news, keep an eye on McDonald's Corp. (NYSE: MCD). The fast-food giant is expected to sell its Malaysian and Singapore franchise to Saudi Arabia investment firm Reza Group. The deal is expected to cost about $400 million and should be finished by the end of the year.
There's a big story unfolding at Yahoo! Inc. (Nasdaq: YHOO). The Internet giant is under criticism for secretly developing a software program for the U.S. intelligence community to search all of its users incoming emails. Reuters reports that the company allowed the scanning of millions of Yahoo Mail accounts for the NSA and the FBI. We will dig deeper into this story today and discuss what it means for the deal between Yahoo and Verizon Communications Inc. (NYSE: VZ).
Stocks to Watch Today, Oct. 5, 2016
- It looks like Twitter Inc. (NYSE: TWTR) is going to select a suitor. TWTR stock is up 3.7% this morning after The Wall Street Journal reported that the company will field takeover bids this week. According to the report, Salesforce.com Inc. (NYSE: CRM) is the leading candidate. Other possible suitors include Alphabet Inc. (Nasdaq: GOOGL) and Walt Disney Co. (NYSE: DIS).
- Is a streaming takeover on tap? Shares of Netflix Inc. (Nasdaq: NFLX) are climbing this morning on speculation that the streaming giant could become a takeover target. Here's more on why NFLX stock has been rallying all week.
- Shares of Alphabet Inc. (Nasdaq: GOOGL) are in focus after the company revealed a roster of new technology gadgets in San Francisco. The firm is taking direct aim at Apple Inc. (Nasdaq: AAPL) with two new smartphones. The firm is also planning a product called Google Home, which will compete against the Echo speaker of Amazon.com Inc. (Nasdaq: AMZN).
- In earnings news, shares of Monsanto Co. (NYSE: MON) are on the rise this morning as the company prepares to report earnings. Wall Street expects an earnings per share (EPS) loss of $0.02 on top of $2.23 billion in revenue. The company continues to generate a lot of interest from investors given that it is the subject of a $66 billion planned merger with Bayer AG (OTCMKTS ADR: BAYRY)
- Look for additional earnings reports from Yum! Brands (NYSE: YUM), Constellation Brands Inc. (NYSE: STZ), Global Payments Inc. (NYSE: GPN), Acuity Brands Inc. (NYSE: AYI), RPM International Inc. (NYSE: RPM), and AZZ Inc. (NYSE: AZZ).
Today's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- ADP Employment Report at 8:15 a.m.
- International Trade at 8:30 a.m.
- Gallup U.S. Job Creation Index at 8:30 a.m.
- Minneapolis Fed President Neel Kashkari speaks at 9:30 a.m.
- PMI Services Index at 9:45 a.m.
- Factory Orders at 10 a.m.
- ISM Non-Manufacturing Index at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- Richmond Fed President Jeffrey Lacker speaks at 1 p.m. and 5 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.