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The Dow Jones Industrial Average retreated on Tuesday after a downturn in global oil prices and a busy round of lackluster quarterly earnings reports. Weak earnings reports and forward guidance issuances from 3M Co. (NYSE: MMM) and Caterpillar Inc. (NYSE: CAT) offered the most weight on the index, with shares of the companies falling 2.9% and 2.2%, respectively.
Let's look at the final numbers on Tuesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,169.27; -53.76; -0.30%
S&P 500: 2,143.16; -8.17; -0.38%
Nasdaq: 5,283.40; -26.43; -0.50%
Now, here's a look at today's most important market events and stocks, plus a preview of Wednesday's economic calendar.
DJIA Today: Markets Slide After CAT, 3M Earnings Reports; AAPL in Focus
The Dow Jones shed 53 points this afternoon as investors weighed a mixed round of quarterly earnings reports and forward guidance from a number of large-cap companies.
Headlining the earnings calendar on Tuesday was Caterpillar Inc. (NYSE: CAT). Shares fell after the company slashed its full-year fiscal 2016 earnings outlook. The firm reduced its annual revenue expectations, citing concerns about the health of the global economy. Meanwhile, 3M stock fell after the firm missed annual revenue expectations and cut its annual forecast.
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Meanwhile, the economic data calendar featured mixed results as well. According to the Conference Board, consumer confidence slipped from 103.5 in September to 98.6 in October. Meanwhile, August home prices increased by 5.1% year over year, according to the S&P CoreLogic Case-Shiller 20-City Index. Housing prices continue to climb thanks to falling inventories around the country. Despite the uptick in prices, shares of housing stocks were on the decline this afternoon. Shares of KB Home (NYSE: KBH) fell 1.8%, while Toll Brothers Inc.
(NYSE: TOL) dropped 1.9%.
The price of crude oil today fell thanks to a stronger U.S. dollar and increased in-fighting among OPEC members. Prices temporarily slipped below $50 for the second straight trading session. Uncertainty over the stability of the global oil cartel's production cut deal accelerated after an Iraqi oil minister demanded his country be exempt from any cuts or caps in output.
The WTI crude oil price today fell by 1.0%, while the Brent crude oil price dipped by 1.1%. Money Morning Global Energy Specialist Dr. Kent Moors offers his latest insight on the major trends that are impacting the oil markets, right here.
But a big story that slipped under the radar on Tuesday was the sharp downturn of Mechel PAO (NYSE ADR: MTL) stock. Shares plunged more than 8.4%, a reversal of the stock's 35% rally on Monday. So why is MTL stock falling today? Here's the answer.
Top Stock Market News Today, Oct. 25, 2016
- Shares of General Motors Co. (NYSE: GM) fell more than 3.8% despite news that the firm topped Q3 earnings expectations this morning. The automotive giant also issued a stronger than expected outlook and said it expects its sales to be on the high end of its previous forecast. So, what is hurting the stock today? Investors are increasingly concerned about a statement from GM's CFO, who said that the firm's European business will face serious challenges in breaking even next year. The company said that the Brexit will impact its business.
- Shares of Apple Inc. (Nasdaq: AAPL) are in focus as the tech giant prepares to release its Q3 earnings after the bell today. Wall Street anticipates an EPS of $1.65 on top of $46.9 billion in revenue. That would be down from revenue $51.5 billion last year. Here's the latest on the AAPL earnings report and how you should play the stock next.
- Shares of Under Armour Inc. (NYSE: UA) plunged more than 13% after the company beat three earnings expectations, but warned that its future growth rate won't meet previous forecasts.
- Look for additional earnings reports from Chipotle Mexican Grill Inc. (NYSE: CMG), Pandora Media Inc. (NYSE: P), Capital One Financial Corp. (NYSE: COF), and Panera Bread Co. (Nasdaq: PNRA).
- Finally, the markets are waiting for a chance to own Snapchat stock. The company's IPO could be the largest since Alibaba Group Holding Ltd. (NYSE: BABA) went public back in 2014. This week, Money Morning unveiled a Snapchat stock guide to help investors understand how the company works, how it makes money, and when it will go public. Check out the guide, right here.
Tuesday's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- International Trade in Goods at 8:30 a.m.
- PMI Services Flash at 9:45 a.m.
- New Home Sales at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 2-Year FRN Note Auction at 11:30 a.m.
- 5-Year Note Auction at 1 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.