Earnings season started off slow, but now the quarterly reports are coming in strong and fast.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Earnings season
Several corporate giants including Wells Fargo (WFC), Bank of America (BAC), Delta (DAL) and BlackRock (BLK) will post earnings before the opening bell.
Netflix (NFLX, Tech30) is reporting after markets close this afternoon.
Shares in Intel (INTC, Tech30) and JP Morgan (JPM) look set to dip at the open after the firms reported earnings on Tuesday afternoon.
Intel reported that third quarter sales were essentially unchanged compared to the same period last year, and earnings declined by about 6%. But the results still beat Wall Street expectations.
Meanwhile, JP Morgan results showed revenue slipped by 6% as it was hit by a double whammy last quarter: the Federal Reserve kept interest rates low and chaos slammed the financial markets.
2. Market overview
U.S. stock futures are holding steady, while stock markets in Europe and Asia move into negative territory.
Mike van Dulken, head of research at Accendo Markets, said you can blame the negative market mood on China, which released weak inflation data.
The U.S. dollar is weakening a bit, while the Aussie dollar is pushing up versus all major global currencies.
Yields on 10-year government bonds are dipping around the world, except in Greece and Portugal where they are inching up.
Oil prices are steady around $46.70 per barrel, and gold is rising by about 0.7% to trade around $1,174 per ounce.
3. Stock market movers
SanDisk, Micron: SanDisk (SNDK) shares are rising by nearly 10% premarket after Bloomberg reported the chipmaker could be in merger talks with Micron (MU) and Western Digital. Micron's shares were also up 3% in extended trading.
4. Economics
The Bureau of Labor Statistics will post September's producer price index at 8:30 a.m. ET. Investors watch the index for clues about where inflation is headed.
The Census Bureau's monthly retail sales report also goes out at 8:30 a.m.
At 2 p.m., Wall Street will look for the Federal Reserve's latest "Beige Book." The report outlines regional economic conditions.
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1. Twitter Inc (N:TWTR) will lay off up to 336 employees, or about 8 percent of its workforce, as co-founder Jack Dorsey readies to revive growth in the microblogging service provider's user base in his second stint as chief executive.
The layoffs, primarily in the company's product and engineering functions, come a week after Dorsey took over as permanent CEO. Shares of Twitter, which had about 4,100 employees globally as of June 30, rose as much as 6 percent in morning trading on Tuesday.
2. The U.S. dollar rose against its Canadian counterpart on Tuesday, as it mildly recovered from speculation the Federal Reserve will most likely hold off from raisinginterest rates this year, although gains were expected to remain limited.
USD/CAD hit 1.3067 during early U.S. trade, the pair's highest since October 7; the pair subsequently consolidated at 1.3072, gaining 0.57%.
3. U.S. stocks were lower on Tuesday after weak China trade data added to worries about slowing global economic growth.
Data showed Chinese imports fell 20 percent in September due to weak domestic demand, indicating that growth in the world's second-largest economy was sputtering.
The selloff was broad based - all 10 major S&P sectors were down, with the industrial sector's <.SPLRCI> 0.54 percent fall leading the decliners.
4. Oil futures swung between gains and losses in volatile trade on Tuesday, amid ongoing uncertainty about how quickly the global glut of crude is set to shrink.
Crude oil for delivery in November on the New York Mercantile Exchange tacked on 92 cents, or 1.95%, to trade at $48.02 a barrel during U.S. morning hours. Prices traded in a wide range between $46.64 and $48.13. A day earlier, Nymex oil prices plunged $2.53, or 5.1%.
5. Johnson & Johnson (N:JNJ) reported a 7.4% fall in quarterly sales as the impact of a strong dollar more than offset higher sales of its older drugs.
Revenue fell to $17.10 billion in the third quarter from $18.47 billion a year earlier.
International sales fell nearly 14% to $8.31 billion in the quarter, including a currency impact of 15.8%, the company said. The company receives nearly half of its revenue from outside the U.S.
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It’s takeover Tuesday!
Investors are toasting a massive deal between the two biggest beer brewers in the world, Anheuser-Busch InBev (AHBIF) and SABMiller (SBMRY). It will be one of the biggest acquisitions in corporate history.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Merger mania
The company that makes the popular Budweiser beer -- AB InBev -- has agreed to buy its main rival SABMiller for £68 billion ($104 billion).
The combined firm will be the world's largest beermaker by far, with nine of the world's top 20 beers by volume.
Most SABMiller shareholders are being offered £44 ($67.59) per share in cash. Meanwhile, the two biggest shareholders -- Altria (MO) and Colombia's Santo Domingo family -- will have to accept cash and stock worth roughly £39.03 ($60) per share.
Shares in SABMiller shot up by about 8.5% in London trading, while AB InBev shares are rising by 2.5%.
Watch shares in smaller brewers on Tuesday. Molson Coors (TAP) shares could move on expectations that the company may pick up some beer brands that the new mega-group is forced to sell to get regulatory approval for the merger.
2. Stocks dip down
It looks like the Dow Jones Industrial Average's seven-day winning streak is about to come to an end.
U.S. stock futures are slipping into the red and there's a negative mood in stock markets around the world.
European markets are slipping in early trading, with many indexes down by about 1.5%.
Asian markets mostly ended with losses.
3. Market movers
FMC, Barclays: Shares in the chemical giant FMC Corp (FMC) plunged by nearly 10% in extended trading after announcing that the decline of the Brazilian real will hurt its performance in the second half of 2015.
Shares in Barclays (BCS) in London are falling by about 3% as newspapers report that Jes Staley, a former JPMorgan (JPM)banker, is set to take over as CEO of the British bank within the next two weeks. Barclays had been moving away from investment banking since the financial crisis. It declined to comment on the reports.
4. Quarterly earnings
Johnson & Johnson (JNJ) is among a handful of companies opening their books before the trading day begins.
After the close, firms including Intel (INTC, Tech30) and JPMorgan Chase (JPM) will report results.
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What is it? Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions.
When? At 8:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.
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What is it? Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
When? At 8:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.
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What is it? It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? It's a leading indicator of consumer inflation - when producers charge more for goods and services the higher costs are usually passed on to the consumer.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? Automobile sales account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
When? At 4:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the GBP to rise.
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What is it? It's a leading indicator of consumer inflation - when businesses pay more for labor the higher costs are usually passed on to the consumer.
When? At 4:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the GBP to rise.
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1. Wall Street was little changed at the open on Monday as investors braced for a busy week of quarterly results from major U.S. banks and several Dow 30 companies.
At 9:30 a.m. EDT, the Dow Jones industrial average (DJI) was up 10.09 points, or 0.06 percent, at 17,094.58, the S&P 500 (SPX) was up 1.09 points, or 0.05 percent, at 2,015.98 and the Nasdaq composite (IXIC) was up 9.91 points, or 0.21 percent, at 4,840.38.
2. There could be sufficient economic data for the Federal Reserve to consider a rate hike at their meeting later in October but there will be a lot more data on hand in time for the December meeting, Atlanta Federal Reserve Bank President Dennis Lockhart said on Monday.
"I think October is a live meeting, clearly there is the potential that the data coming in, in advance of the October meeting will be sufficient … we have a lot more in December," he said following a speech to a university association in Orlando, Florida.
3. The U.S. dollar edged lower against its Canadian counterpart on Monday, hovering close to a two-month trough as the minutes of the Federal Reserve's latest policy meeting continued to dampen demand for the greenback.
Trading volumes were expected to remain thin on Monday, with U.S. markets closed for a national holiday.
4. Gold futures rose to the highest level since August on Monday, as doubts over whether the Federal Reserve will hike interest rates before the end of the year boosted the appeal of the precious metal.
Gold for December delivery on the Comex division of the New York Mercantile Exchange hit an intraday peak of $1,168.60 a troy ounce, the most since August 24, before trading at $1,166.30 during U.S. morning hours, up $10.40, or 0.9%.
5. Crude oil futures reversed earlier gains to trade lower on Monday, following the release of the latest supply estimates from the Organization of the Petroleum Exporting Countries.
On the ICE Futures Exchange in London, Brent oil for December delivery shed 56 cents, or 1.07%, to trade at $52.35 a barrel during U.S. morning hours after rising by as much as 1.32% earlier in the session.
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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Stock market mover
EMC: Shares in data storage firm EMC Corp (EMC) are rising by about 7% in extended trading based on reports saying Dell is set to announce it will take over the company, which is currently valued above $50 billion.
If the takeover happens, it would be the biggest tech deal ever, and among the top 40 M&A deals of all time.
2. Global markets overview
Stock markets around the world are middling right now. U.S. stock futures are trading around where they left off on Friday.
European markets are vacillating between minor gains and losses.
Asian markets mostly ended with gains. Chinese stock markets were standout stars as the Shanghai Composite jumped 3.3% and the volatile Shenzhen index surged 4.2%.
In Turkey, the main stock market and national currency are roughly stable after two deadly bomb blasts tore through crowds taking part in a peace rally in the capital over the weekend. At least 97 people died in the attack.
3. Weekly market recap
U.S. markets notched a good week. The Dow Jones industrial average rose by 3.7% over the past five trading days. The S&P 500 gained 3.3% and the Nasdaq jumped 2.6%.
4. Oil prices pushing up
West Texas Intermediate oil futures traded close to the highest level since July on Monday, amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer.
Crude oil for delivery in November on the New York Mercantile Exchange tacked on 24 cents, or 0.48%, to trade at $49.87 a barrel during European morning hours.
There will be no floor trading on the Nymex on Monday because of the Columbus Day holiday in the U.S. All electronic transactions will be booked with Tuesday's trades for settlement.
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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.
When? At 8:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.
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What is it? As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.
When? At 1:20pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the CAD to rise.
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World stocks rallied on Friday, putting them on course for their biggest weekly rise in four years after minutes of the Federal Reserve's last policy meeting showed the U.S. central bank is in no rush to raise interest rates.
Investors' relief that the Fed probably won't move until next year saw them take on more risk across the board, with commodities in particular recovering some of their recent heavy losses to chalk up their biggest gains in years.
Brent crude oil was on track for its biggest weekly rise since March 2009, while zinc soared 9 percent - its biggest daily gain for seven years - after troubled mining giant Glencore (LONDON:GLEN) said it would cut production.
Glencore shares themselves surged 12 percent, meaning they were up 41 percent on the week - their biggest weekly rise since being floated in mid-2011 - and doubling from the record low reached only two weeks ago.
At midday in Europe, the MSCI world equity index was up 0.8 percent. That was the eighth rise in a row, and put the index up 4.5 percent on the week, its best performance since late 2011.
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Oil prices are back above $50 per barrel and it looks like the Dow could extend a winning rally that began last week.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Market overview
U.S. stock futures are sitting around the levels where they closed on Thursday while global markets rally.
European markets are all up in early trading, boosted by mining and energy companies.
Germany's DAX index is rising 1% Friday.
Asian markets ended the session with gains.
Minutes from the September meeting of the Federal Reserve came out Thursday afternoon, revealing the Fed was worried about the impact of the slowing global economy when considering whether to raise interest rates.
These minutes pushed the dollar down and gave a boost to commodities.
Crude oil futures are now trading around $50.40 per share.
2. Stock market movers
Alcoa, Gap, Glencore: Shares in Alcoa (AA) look set to drop by 4% at the open after the company reported a disappointing set of earnings on Thursday evening.
Investors were unimpressed by a 5-week sales report from Gap (GPS) and shares are dipping by about 6% in extended trading.
The battered mining giant Glencore (GLCNF) announced Friday it will cut its zinc production by a third. The cutback will see the world's zinc output drop by 4%. Investors responded by bidding shares up by 8% in London. Glencore's shares have more than halved this year as investors worry about low commodity prices.
3. Listening to Lima
Hot shots from the International Monetary Fund and the World Bank have converged for a big annual meeting in Peru's capital city. Investors are paying very close attention.
"Sideline commentary from global policymakers ... may disrupt otherwise quiet consolidation into the end of the week," said Ilya Spivak, currency strategist at DailyFX.
On Thursday evening, the IMF's managing director Christine Lagarde called China's economic slowdown "healthy", saying it was the result of much-needed reforms.
The IMF had downgraded its world growth forecast earlier this week.
The meeting concludes Saturday.
4. Thursday market recap
Markets were up Thursday. The Dow Jones industrial average rose 0.8%, the S&P 500 climbed 0.9% and the Nasdaq added 0.4%.
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1. U.S. stocks opened lower on Thursday ahead of the minutes of the Federal Reserve's September meeting that investors are counting on to provide insight into the Fed's thinking on interest rates.
The Dow Jones industrial average fell 19.01 points, or 0.11 percent, to 16,893.28. The S&P 500 lost 4.51 points, or 0.23 percent, to 1,991.32 and the Nasdaq composite index dropped 16.20 points, or 0.34 percent, to 4,774.95.
2. The number of Americans filing new applications for jobless benefits fell more than expected to near a 42-year low last week, pointing to ongoing tightening in the labor market despite the recent slowdown in hiring.
The data released on Thursday provides an upbeat check on the health of the labor market after last week's monthly employment report increased doubts the Federal Reserve would raise interest rates by the end of this year.
3. U.S. holiday season sales will increase by 3.7 percent in 2015, marking slightly slower growth than last year as consumers fret about a potential government shutdown and sluggish income growth, the leading retail industry group said on Thursday.
The National Retail Federation (NRF) forecast sales from November to December 2015 at $630.5 billion, excluding autos, gas and restaurant sales. The growth rate would be significantly higher than the 10-year average of 2.5 percent, though slower than the 4.1 percent increase in 2014, the NRF said.
4. The dollar pared losses against the other major currencies on Wednesday, easing off a three-week trough after data showed that the number of people who filed for unemployment assistance in the U.S. fell more than expected last week.
The dollar was steady against the yen, with USD/JPY at 119.93.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 3 fell by 13,000 to 263,000 from the previous week’s downwardly revised total of 276,000.
5. Oil prices held steady after surrendering early gains on Thursday, as an unexpectedly large rise in U.S. inventory levels dented some of the recent optimism that the oversupply plaguing the market could soon vanish.
U.S. crude stocks rose by 3.1 million barrels to 461 million last week as refineries cut output and idled capacity. Analysts had expected a rise of 2.2 million barrels.
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