Dow Jones futures are up 37 points this morning as markets continue to weigh the results of Sunday's election in France. Markets pressed higher Monday after Emmanuel Macron beat Marine Le Pen, but the real story was the continued decline in volatility. The CBOE Volatility Index - which measures the markets' expectations for short-term volatility - hit its lowest levels since Bill Clinton was president.
Following last week's positive jobs report, investors will be listening to separate speeches today from Boston Federal Reserve Bank President Eric Rosengren and Dallas Federal Reserve Bank President Robert Kaplan. The Fed did not raise interest rates last week, but investors anticipate that the central bank will take action on monetary policy in June. Rosengren and Kaplan are expected to discuss the possibility of two interest rate hikes in 2017.
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 South Korea and the United States. 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.
Crude oil prices are stabilizing after recently hitting a 2017 low. The combination of rising U.S. production and uncertainty over whether OPEC will renew its production cut agreement have weighed on trader sentiment. The WTI crude oil price today fell 0.22%. Brent crude dipped 0.26%.
Elsewhere in Washington, markets are keeping a close eye on the actions of U.S. Attorney General Jeff Sessions. The Trump administration has not made it clear whether it will continue the hands-off approach to states' legalization of marijuana or whether we will see a crackdown in the future. Money Morning Director of Technology & Venture Capital Research Michael A. Robinson offers his latest insight into how to play marijuana stocks. Read his latest insight, right here.
Four Stocks to Watch Today: DIS, VRX, ODP, AAPL
In earnings news, shares of Walt Disney Co. (NYSE: DIS) are in focus as the entertainment giant reports after the bell Tuesday. Wall Street analysts project the firm will report per-share earnings 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 ESPNfranchise, which has seen a sharp drop in subscribers as more Americans cut the cable cord or downgrade to more affordable cable packages.
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Shares of Valeant Pharmaceuticals International Inc. (NYSE: VRX) jumped more than 13% in pre-market hours after the struggling Canadian pharmaceutical firm reported earnings. The company reported per-share earnings of $0.78 on top of $2.11 billion in revenue. Analysts had anticipated earnings of $0.96 per share on top of $2.16 billion in revenue. The firm also raised its full-year earnings expectations.
Shares of Apple Inc. (Nasdaq: AAPL) are again pushing back into record territory. The tech giant topped a market capitalization of $800 billion Monday thanks to positive remarks from Warren Buffett. The billionaire said his firm had tripled its stake in Apple stock.
Shares of Office Depot Inc. (Nasdaq: ODP) jumped more than 3.7% after the company topped Wall Street earnings expectations. The office retailer reported adjusted earnings per share (EPS) of $0.16, while analysts had projected $0.12 per share. The company topped expectations by slashing operational expenses.
Look for additional earnings reports from Nvidia Corp. (Nasdaq: NVDA), Yelp Inc. (Nasdaq: YELP), Electronic Arts Inc. (NYSE: EA), TripAdvisor Inc. (Nasdaq: TRIP), Fossil Inc. (Nasdaq: FOSL), Allergan Plc. (NYSE: AGN), News Corp. (Nasdaq: NWSA), Jazz Pharmaceuticals Plc. (Nasdaq: JAZZ), SunPower Corp. (Nasdaq: SPWR).
Tuesday's U.S. Economic Calendar (all times EDT)
NFIB Small Business Optimism Index at 6 a.m.
Redbook at 8:55 a.m.
JOLTS at 10 a.m.
Wholesale Trade at 10 a.m.
Four-Week Bill Auction at 11:30 a.m.
Boston Federal Reserve Bank President Eric Rosengren speaks at 1 p.m.
Three-Year Note Auction at 1 p.m.
Dallas Federal Reserve Bank President at Robert Kaplan speaks at 4:15 p.m.