Crude oil prices were falling again Tuesday on concerns about rising U.S. supply and increased shale production. This morning, the U.S. Energy Information Administration hiked its production forecast. The government agency anticipated that daily crude production will rise to an average of 9.3 million barrels this year and tick up to 10 million barrels by 2018. Traders also remain unconvinced that OPEC members will extend their six-month deal to cap excessive production. WTI crude oil price today dropped 0.8%, while Brent crude slipped 0.3%. Shares of Chevron Corp. (NYSE: CVX) fell 1.6% on the day.
The U.S. Federal Reserve was generating buzz once again, but today's news had little to do with interest rates. Boston Fed Bank President Eric Rosengren warned that congressional and hedge fund efforts to overhaul Fannie Mae and Freddie Mac could lead to a "significant shock" in the commercial real estate industry. Several hedge fund managers have been pushing for the government to divest its stake in the two firms and to eliminate profit sweeping.
China has warned President Donald Trump not to withdraw the United States from the Paris Climate Accord. The country said that doing so would affect future trade deals between the United States and the world's second-largest economy. Money Morning Global Energy Strategist Dr. Kent Moors offers his insight into the impact of the Paris Accord and issues a stern warning about the cooling of relations between the United States and China. Read it, right here.
On the international front, the United States is still trying to determine how to handle a volatile situation in North Korea. The rogue nation continues to develop its nuclear weapons program and threaten the U.S. and South Korea. But one defense expert warned over the weekend that Kim Jong Un's military could already be positioned for an attack on the United States via other means. Two North Korean satellites are hovering over us right now. Here are the latest developments in this disturbing story.
Four Stocks to Watch Tuesday: DIS, SAVE, AAPL, FB
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What Can We Expect from North Korea in 2017?
Shares of Walt Disney Co. (NYSE: DIS) are in focus as the entertainment giant reports after the bell Tuesday. Wall Street analysts project that the firm will report earnings per share (EPS) of $1.45 on top of $13.47 billion in revenue. Investors will be keeping a close eye on the performance of the company's ESPN franchise, which has seen a sharp drop in subscribers as more Americans cut the cable cord or downgrade to more affordable cable packages. DIS stock added 0.6% during today's trading session.
Spirit Airlines Inc. (Nasdaq: SAVE) is the latest airline company to suffer public relations problems. Given a shortage of pilots, the company was forced to cancel nine flights out of Fort Lauderdale-Hollywood International Airport. The cancelations fueled a series of fist fights and stranded hundreds of passengers. Shares of SAVE stock fell 2.3% on the day.
Facebook Inc. (Nasdaq: FB) stock dipped 0.3% despite news that Wells Fargo & Co. (NYSE: WFC) reaffirmed its "Outperform" rating on the social media giant and set a price target of $170.00 per share. But the company could see its stock surge well past that level given the buzz surrounding Facebook TV. Here's the latest on Facebook TV and why it is going to be a boon for shareholders.
Shares of Apple Inc. (Nasdaq: AAPL) hit a new all-time intraday high Tuesday. The tech giant topped a market capitalization of $800 billion Monday thanks to positive remarks from Warren Buffett. The billionaire said that his firm Berkshire Hathaway Inc. (NYSE: BRK.A) had tripled its stake in Apple stock. AAPL stock added 0.6% on the day.
Look for earnings reports after the bell from Nvidia Corp. (Nasdaq: NVDA), Yelp Inc. (Nasdaq: YELP), Electronic Arts (NYSE: EA), TripAdvisor Inc. (Nasdaq: TRIP), Fossil Inc. (Nasdaq: FOSL), News Corp. (Nasdaq: NWSA), Jazz Pharmaceuticals Plc. (Nasdaq: JAZZ), SunPower Corp. (Nasdaq: SPWR).
Wednesday's U.S. Economic Calendar (all times EDT)
MBA Mortgage Applications at 7 a.m.
Import and Export Prices at 8:30 a.m.
Atlanta Fed Business Inflation Expectations at 10 a.m.
EIA Petroleum Status Report at 10:30 a.m.
Boston Federal Reserve Bank President Eric Rosengren speaks at 12 p.m.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.