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This morning, the Dow Jones Industrial Average is trending higher as investors continue to monitor the latest round of earnings reports and economic data.
U.S. jobless claims stayed near a 43-year low as companies continue to hire and retain talent.
It's also been a positive week for financial stocks as investors cheer strong earnings reports. Expectations are rising that the Federal Reserve will increase interest rates in December because of positive economic data.
But while everyone is growing more optimistic, another big story is brewing that everyone seems to have ignored.
There is a crisis brewing in the consumer debt markets… and it all comes back to one terrible word from the 2009 financial crisis: Subprime lending.
On Wednesday, the Dow rallied as energy stocks surged thanks to a big boost in oil prices.
Wednesday's Stock Market Numbers:
Dow Jones: 18,202.62; +40.68; +0.22%
S&P 500: 2,144.29; +4.69; +0.22%
Nasdaq: 5,246.41; +2.57; +0.05%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 21-point gain as investors weighed mixed earnings results and economic data on the health of the U.S. economy and job market.
According to the Commerce Department, housing starts declined 9% in September. That was the second straight month of declines, which has prompted fears of another U.S. housing bubble. Money Morning breaks down questions about housing, and lays out the ten most overheated housing markets in the United States. Do you live in one of these ten cities?
The price of crude oil today is sliding despite yesterday's surprise report by the Energy Information Administration. The federal agency reported a surprise drop in weekly inventory levels. For the week ending Oct. 14, domestic crude inventories declined by 5.2 million barrels. That was nearly double the consensus estimate of economists. After the WTI crude price hit its highest level since July 2015, traders are taking some gains off the table.
The WTI crude oil price today fell 0.2%, while the Brent crude oil price dipped 0.3%.
But the big story in premarket hours is last night's debate between GOP nominee Donald Trump and Democratic nominee Hillary Clinton. In the final matchup between the political opponents, the two traded barbs on issues ranging from foreign policy to tax hikes. Of course, the biggest source of fireworks is the accusation by Trump supporters that the election could be rigged. That theory is fueled by news that election machines tied to Clinton-backer George Soros have been deployed in 16 states. Here's what you need to know on that story.
With the election less than 20 days away, keep up with our latest 2016 Election coverage, right here.
Stocks to Watch Today, October 20, 2016
- In earnings news, eBay Inc. (Nasdaq: EBAY) plunged 8% in premarket hours after the company reported Q3 earnings after the bell on Wednesday. Though the shopping giant beat expectations, the company released a dismal outlook for the holiday shopping season. The firm also reported that it had 165 million active buyers on the site, a tick below analyst expectations. eBay continues to face very stiff competition from brick-and-mortar retailers and ecommerce giant com Inc. (Nasdaq: AMZN).
- Shares of American Express Company (NYSE: AXP) surged more than 5.4% in premarket hours after the firm crushed Wall Street expectations. The firm reported earnings per share (EPS) of $1.24, well above the $0.96 forecasted by analysts. The firm also reported $7.7 billion in revenue, topping Wall Street estimates.
- Investors will want to keep an eye on our IPO calendar. This week, CRISPR stock debuts in one of the most highly anticipated biotech IPOs of the year. There is a ton of hype around this tiny biotech company. Here's everything you need to know about the CRISPR IPO.
- Look for additional earnings reports from Verizon Communications Inc. (NYSE: VZ), Microsoft Corp. (Nasdaq: MSFT), Advanced Micro Devices Inc. (Nasdaq: AMD), Skechers USA Inc. (NYSE: SKX), Schlumberger Ltd (NYSE: SLB), PayPal Holdings Inc. (Nasdaq: PYPL), and Walgreens Boots Alliance Inc. (NYSE: WBA).
Today's U.S. Economic Calendar (all times EST)
- Jobless Claims at 8:30 a.m.
- Philadelphia Fed Business Outlook Survey at 8:30 a.m.
- New York Fed Bank President William Dudley Speaks at 8:30 a.m.
- Bloomberg Consumer Comfort Index at 9:45 a.m.
- Existing Home Sales at 10 a.m.
- Leading Indicators at 10 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.
- 2-Year FRN Note Announcement at 11 a.m.
- 2-Year Note Announcement at 11 a.m.
- 5-Year Note Announcement at 11 a.m.
- 7-Year Note Announcement at 11 a.m.
- 30-Yr TIPS Auction at 1 p.m.
- Fed Balance Sheet at 4:30 p.m.
- Money Supply at 4:30 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.