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The Dow Jones Industrial Average rose 110 points in pre-market trading despite signs that global oil prices have entered bear market territory. Ongoing geopolitical tensions and weakening economic expectations have pushed oil into a bear market just weeks after prices hit a four-year high.
Yesterday, crude prices fell 7%, the worst one-day performance since September 2015. Ongoing forecasts of higher supply and weakening demand continue to rattle the sector. Russian energy analysts attempted to reiterate confidence in OPEC, despite Saudi Arabia's announcement that it will cut daily shipments by 500,000 barrels per day.
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Here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
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Now, here's a closer look at today's Money Morning insight, the most important market events, and stocks to watch.
The Top Stock Market Stories for Wednesday
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- Investors are keeping a close eye on inflation data Wednesday. The U.S. Labor Department's update on consumer prices will take center stage today. The agency said that consumer prices for the month of October rose by 0.3%. Inflation has now increased by 2.5% year over year, while wages are up just 0.9%. The uptick in inflation signals that the U.S. Federal Reserve is on the verge of again raising interest rates. The Fed is poised to hike rates in December for the fourth time this year in order to tame inflation. The central bank aims to keep inflation at roughly 2% annually.
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Three Stocks to Watch Today: TLRY, M, SNAP
- Shares of Macy's Inc. (NYSE: M) retreated despite news that the retailer topped Wall Street earnings expectations before the bell. The firm reported that same-store sales increased for the fourth consecutive quarter, which helped bring adjusted earnings per share to $0.27. Wall Street had expected the retailer to report $0.14 per share. Shares of Macy's stock received support after the company hiked its forward guidance and predicted a strong holiday retail season in the weeks ahead.
- Tilray Inc. (NASDAQ: TLRY) shares were off 5% this morning after the cannabis company reported a smaller-than-expected quarterly loss. The cannabis firm also reported an 85% jump in year-over-year revenue thanks to stronger-than-expected sales of medicinal marijuana. The company's CEO said that it expects to see sales from Canadian recreational use begin to affect earnings in its next quarterly report.
- Snap Inc. (NASDAQ: SNAP) stock was back near an all-time low this morning after falling another 6.5%. The owner of Snapchat received a subpoena from the U.S. Justice Department and the SEC over its IPO from 2017. The investigation comes after shareholders initiated a lawsuit against the social media giant and accused its leadership of misleading investors about the impact of rival Instagram on its profitability.
- Look for earnings reports from Blue Apron Holdings Inc. (NASDAQ: APRN), Canopy Growth Corp. (NYSE: CGC), Cisco Systems Inc. (NASDAQ: CSCO), Macy's Inc. (NYSE: M), Tencent Holdings (OTCMKTS: TCEHY), and Vipshop Holdings Ltd. (NASDAQ: VIPS).
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.