The Dow Jones Industrial Average Dips After Weak Earnings from Google Parent Company

Garrett Baldwin

The Dow Jones Industrial Average is on the decline after Alphabet Inc. (NASDAQ: GOOGL) saw a 23% year-over-year dip in profits.

I have more on the Google parent's earnings miss below. But that is not the only issue moving the Dow today…

Before we get into it, here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:

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 Tuesday

• Markets continue to weigh the ongoing trade developments between the United States and China. While the outlook has improved ahead of next month's global summit in Chile, more uncertainty has emerged over tariffs. On Monday night, the Trump administration said that it may extend certain tariff exclusions on about $34 billion in Chinese imports.

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• Today, pay close attention to the developments out of Britain. It looks very likely that the country will have another election in December. Prime Minister Boris Johnson has promised to deliver on Brexit; however, the event has received yet another delay until Jan. 31. The nation's leading parties have different opinions on how to proceed in their divorce with the European Union. More important, neither side appears willing to lead through the process or face responsibility for the outcome.
• Oil prices remain under pressure due to growing supply buildups around the globe. WTI crude fell 1.5%, while Brent crude dipped 1%. Meanwhile, the big news today is that Saudi Aramco will begin to ramp up its IPO efforts on Nov. 3. Reuters reports that the firm aims to float a 1% or 2% stake on the country's public market. The IPO would likely be in the $20 billion range.

Stocks to Watch Today: GOOGL, BYND, MRO, AMD

• Shares of Alphabet Inc. (NASDAQ: GOOGL) dipped 1% this morning after a rare earnings report miss from the firm. The search giant reported a 23% dip in profits, year over year, for the third quarter. Analysts had expected the firm to report earnings per share of $12.42. Instead, the firm reported EPS of $10.12. In addition, the firm reportedly made an offer to purchase wearable tech firm Fitbit Inc. (NYSE: FIT), a story that pushed the latter's stock much higher Monday afternoon.
• Shares of Beyond Meat Inc. (NASDAQ: BYND) plunged more than 18% after the firm reported quarterly earnings and suggested weaker profits in the future. Although the alternative meat giant reported EPS of $0.06, beating forecasts by $0.03, executives said it must cut prices and offer discounts to address the swell of competition in the space.
• Marathon Oil Corp. (NYSE: MRO) has caved to activist hedge fund Elliott Management. The firm announced it will spin off its gasoline stations and overhaul its executive leadership team. The announcement comes weeks after the oil company received demands from the hedge fund to break up into three different companies.
• Look for earnings reports today from Advanced Micro Devices Inc. (NYSE: AMD), Shopify Inc. (NASDAQ: SHOP), Mastercard Inc. (NYSE: MA), Electronic Arts Inc. (NASDAQ: EA), Pfizer Inc. (NYSE: PFE), FireEye Inc. (NASDAQ: FEYE), ConocoPhillips (NYSE: COP), and General Motors Co. (NYSE: GM).

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Garrett Baldwin

About the Author

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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.

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