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The Dow Jones news today centers around another busy day of earnings reports and updates on economic activity from the U.S. Federal Reserve.
Let's look at the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
- Dow Jones: 20,523.28; -113.64; -0.55%
- S&P 500: 2,342.19; -6.82;-0.29%
- Nasdaq: 5,849.47; -7.32; -0.12%
Today's market highlights:
- Yahoo! Inc. (Nasdaq: YHOO) topped Wall Street revenue expectations after the bell on Tuesday. That news that pushed shares up 0.3% in pre-market hours.
- Vice President Mike Pence spoke in Japan and warned that any use of weapons by North Korea would be met with a swift response from the U.S. military.
- We check in on the possibilities of the Brexit, the Frexit, and the Grexit below.
- On Tuesday, the Dow fell 113 points after the latest round of earnings reports disappointed Wall Street and tensions with North Korea escalated. Goldman Sachs Group Inc. (NYSE: GS) contributed more than 70 points to the decline after the investment bank reported a surprise miss in its quarterly results.
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Here's a look at today's most important market events and stocks, plus a look at Wednesday's economic calendar.
What's Ahead for the Dow Jones Industrial Average Today
- Dow futures project a 38-point gain ahead of a busy day of earnings reports. Investors are paying close attention to a potential snap election from British voters in June that could determine the fate and timing of the Brexit. Meanwhile, twists and turns in the upcoming French election could impact whether France stays in the European Union.
- Markets are still focused on a round of geopolitical stories dominating the headlines. While elections in the UK and France are the subject of political infighting, the real story is centered on North Korea. On Tuesday, Vice President Mike Pence spoke before U.S. and Japanese soldiers and promised a "overwhelming and effective" response to North Korea should it use conventional or nuclear weapons. "The United States of America will always seek peace but under President Trump, the shield stands guard and the sword stands ready," Pence said in his speech.
- The Federal Reserve is back in focus as the central bank prepares to issue the monthly Beige Book, which provides an update on economic activity and sentiment around the nation. Markets will also eye a speech by Boston Federal Reserve Bank President Eric Rosengren for clues on the timing of the central bank's next interest rate hike. The probability of a rate hike in June has fallen below 50%, according to CME Group's FedWatch Tool.
- Crude oil prices were up after OPEC announced its commitment to reducing the global glut that has remained across the markets since 2014. Despite this morning's optimism, there is growing concern that prices could slide as new evidence shows U.S. production levels continue to rise and flood the markets.
- The American Petroleum Institute reported crude inventories fell by 840,000 barrels last week; however, it also said that gasoline stocks were up nearly 1.4 million barrels. Traders will keep a close eye on the official weekly inventory report from the U.S. Energy Information Administration later this morning.
- The WTI crude oil price today was off 0.04%, while Brent crude fell 0.02%.
- But the big story is back in Greece, where the nation is lining up for another bailout. It seems like every time we report a story on the small European nation, it's back meeting with its international creditors and unable to meet its debt obligations. While we could see the country get another check from Europe, this one could very well be the last.
- Forget Brexit or Frexit this morning. What investors need to be worried about is a possible forced Grexit, a possibility that could have a huge impact on your money. Here's what you need to know.
Stocks to Watch Today, April 19, 2017:
Why Ford Is Our No. 1 Stock for 2017
- Shares of Facebook Inc. (Nasdaq: FB) generated a wealth of headlines yesterday at its annual F8 conference. The two-day event featured CEO Mark Zuckerberg laying out his vision for the company in the years ahead. At Money Morning, we project Facebook stock is a healthy candidate to reach $250 per share by 2020. Here's everything you need to know about this bold prediction...
- In earnings news, shares of Yahoo! Inc. (Nasdaq: YHOO) beat Wall Street revenue and profit expectations after the bell. The digital giant reported earnings per share (EPS) of $0.18 on top of $833.7 billion in revenue. That surpassed consensus expectations of EPS of $0.16 on top of $800.1 billion in revenue.
- Next up, International Business Machines Corp. (NYSE: IBM) topped consensus earnings expectations, but fell short of revenue projections. Shares fell more than 4.4% as Big Blue's long-running strategic turnaround showed some progress, but yet another decline in sales and quarter of low profitability. The firm reported an 18% decline in its earnings and the 20th straight quarter of declining revenue.
- Shares of Morgan Stanley (NYSE: MS) are in focus as the global investment bank prepares to report earnings before the bell. Shares were up slightly before the firm issued its quarterly figures. Investors are hoping the firm can capitalize on Goldman Sachs' surprise quarterly miss. Markets expect Goldman's weakness in fixed income, currency, and commodity trading will be Morgan Stanley's gain.
- Look for additional earnings reports from Qualcomm Inc. (Nasdaq: QCOM), eBay Inc. (Nasdaq: EBAY), American Express Co. (NYSE: AXP), Las Vegas Sands Corp. (NYSE: LVS), Kinder Morgan Inc. (NYSE: KMI), CSX Corp. (NYSE: CSX), BlackRock Inc. (NYSE: BLK), U.S. Bancorp (NYSE: USB), and Abbott Laboratories (NYSE: ABT).
Today's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- Boston Federal Reserve Bank President Eric Rosengren speaks at 12:30 p.m.
- Beige Book at 2 p.m.