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This morning, the Dow Jones Industrial Average is on the rise as investors begin to evaluate earnings reports from Caterpillar Inc. (NYSE: CAT), Under Armour (NYSE: UA), and General Motors Co. (NYSE: GM).
This week will be the busiest of earnings season as one-third of S&P 500 components provide quarterly reports.
Even though earnings data has been positive thus far, a group of economists says there is a 20% chance of a recession within the next 12 months.
Low interest rates, the slowdown in China, and the fall of the pound could all be leading us straight to a recession. But Money Morning Options Trading Specialist Tom Gentile warns about another factor that could push the economy into a recession.
What is that recession driver? Find out, right here.
On Monday, the Dow gained 77 points after another round of mergers and acquisitions and a strong day of earnings reports. Investors are increasingly optimistic that we may emerge from an earnings recession that has battered corporate America.
Monday's Stock Market Numbers:
Dow Jones: 18,223.03; 77.32; 0.43%
S&P 500: 2,151.33; 10.17; 0.47%
Nasdaq: 5,309.83; 52.43; 1.00%
What's Ahead for the Dow Jones Industrial Average Today
The Dow Jones Industrial Average projected a 10-point gain at the opening bell. Blue-chip heavyweights are set to report quarterly earnings, while the markets continue to monitor the progress of one of the largest telecommunications mergers in U.S. history. Expect a busy day for housing stocks thanks to the release of the S&P CoreLogic Case-Shiller composite index. Wall Street anticipates that housing prices in 20 metropolitan areas have remained unchanged on a year-over-year basis.
Trending Story: Our Newest Gold Price Prediction for Q4
The price of crude oil today rose despite uncertainty about the OPEC-Russia deal. Traders are looking ahead at today's round of economic data, which includes an update on U.S. inventories from the American Petroleum Institute.
The WTI crude oil price today added 0.5%, while the Brent crude oil price gained 0.2%. On Monday, Iraqi oil leaders demanded an exemption from the production cuts set by the global oil cartel. The war-torn country says it needs as much money as it can earn from oil in order to combat ISIS.
But the big story in pre-market hours is the problems with the Affordable Care Act. On Tuesday, the U.S. government reported that Obamacare premiums will surge at least 22% for a benchmark silver plan in 2017. It's the latest blow to the healthcare exchanges created with the passages of the law. Of course, some politicians are pushing single-payer healthcare as a solution to a problem that they created. The problem, however, is the massive cost of such a plan. Here's what a single-payer system would do to your taxes.
Stocks to Watch Today, Oct. 25, 2016
- Shares of Apple Inc. (Nasdaq: AAPL) are up 0.4% as the tech giant prepares to release its Q3 earnings after the bell. APPL stock has been on a big run in the last few months, even though investors anticipate another decline in sales due to stagnating demand for the iPhone 7 and iPhone 7 Plus. The company is expected to unveil a new line of MacBook computers on Thursday, while investors anticipate stronger sales after its September iPhone 7 launch. Here's where we expect Apple stock to go in the months and years ahead.
- Look for additional earnings reports from Chipotle Mexican Grill Inc. (NYSE: CMG), Pandora Media Inc. (NYSE: P), Wynn Resorts Ltd. (Nasdaq: WYNN), Panera Bread (Nasdaq: PNRA), Coach Inc. (NYSE: COH), Procter & Gamble Co. (NYSE: PG), Lockheed Martin Corp. (NYSE: LMT), Merck & Co. Inc. (NYSE: MRK), Freeport-McMoRan Co. (NYSE: FCX), and Spirit Airlines (Nasdaq: SAVE).
- Finally, on Nov. 8, nine states will be voting on marijuana legalization referendums in a single day. And this could create one of the greatest wealth grabs in the history of the United States. Here are the nine states with marijuana legalization on the ballot.
Today's U.S. Economic Calendar (all times EDT)
- Redbook at 8:55 a.m.
- FHFA House Price Index at 9 a.m.
- S&P Corelogic Case-Shiller HPI at 9 a.m.
- Consumer Confidence at 10 a.m.
- Richmond Fed Manufacturing Index at 10 a.m.
- State Street Investor Confidence Index at 10 a.m.
- 4-Week Bill Auction at 11:30 a.m.
- 2-Year Note Auction at 1 p.m.
- Atlanta Federal Reserve Bank President Dennis Lockhart speaks at 1:20 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.