For April 1, 2015, here are your Dow futures, top market news,
pre-market movers, and stocks to watch in the stock market
Dow Futures Today
today (Wednesday) forecasted a 65-point retreat from
yesterday’s Dow close
plunged 200 points Tuesday as energy stocks slipped on
news of an extended deadline for an Iranian nuclear deal. Basic
materials stocks were the biggest decliners Tuesday.
Dow Chemical Co.
(NYSE: FCX), and
Air Products Chemicals Inc.
(NYSE: APD) all lost more than 1.4% on the day.
Top News in the Stock Market Today
- This morning, we’ll get our first indication of the
employment situation for March. Automatic Data Processing (ADP)
will report private sector job growth for the month. Meanwhile,
will be in focus this afternoon after the Energy Information
Administration will provide an update on crude stocks. The United
States has seen its oil stocks rise for ten-consecutive weeks,
and storage continues to fill up at record levels.
- On the global level, investors must keep an eye on the final
March reading of the manufacturing purchasing managers’ index
(PMI) in China. A similar reading will be released in the primary
- The IPO world is abuzz about web hosting company
. The company has priced its initial public offering at $20 per
share, a nice bump from its original estimates of $17 to $19. The
current estimates value the firm at roughly $4.5 billion,
including debt. The firm will trade on the New York Stock
Exchange under the ticker “GDDY.” So, should you take part in
this IPO? We break down the questions that investors should be
asking ahead of this huge company launch.
- Brent oil, priced in London, remained flat and hovered near
$55 per barrel. WTI crude, priced in New York City, slipped a bit
ahead of inventory reports. Domestic prices slipped 0.8% to hit
$47.22 per barrel.
Pre-Market Movers in the Stock Market Today: SNX, MAC
Pre-Market Mover No. 1, SNX:
) slid more than 3% in post-market hours yesterday after the
company reported weaker than expected first-quarter earnings. The
firm announced per-share earnings of $1.46, below analyst
expectations of $1.52 a share.
Pre-Market Mover No. 2, MAC:
) said it has rejected the “best and final” offer from Simon
Property Group Inc. (
). Simon announced it has withdrawn its $16.8 billion bid that
would have created a massive mall operation company. Shares of
MAC slipped nearly 1% on the news
Stocks to Watch Today: BRK.A, RDS-A, CVX, BP, WMT
Stocks to Watch No. 1, BRK.A:
Yesterday, Warren Buffett, chairman and CEO of
Berkshire Hathaway Inc.
(NYSE: BRK.A), said Greece’s departure from the Eurozone
“may not be a bad thing for the euro.” During an interview with
, Buffett said a “Grexit” could create a better framework for
future fiscal policy in the region. Buffett made headlines last
week after he worked with private equity giant 3G Capital to
drive a merger between
Kraft Foods Group Inc.
(Nasdaq: KRFT) and H.J. Heinz Co. Here’s a breakdown of
10 Warren Buffett stocks to watch in 2015…
Stocks to Watch No. 2, RDS-A, CVX, BP:
With the Iran deal on the ropes, our global energy specialist Dr.
Kent Moors sees oil prices about to start creeping. But Dr. Moors
warns against the trap of investing in ETFs that track oil
prices. The best way to make money over the long-term is to
invest in three large multinationals that are trading at a
discount and pay strong dividends. Says Kent:
Royal Dutch Shell
(NYSE ADR: RDS-A), and
(NYSE: CVX) are three that regularly pay
dividends and could all bridge the gap while their
discounted stock prices rebound.”
Stocks to Watch No. 3, WMT:
Ahead of earnings season, the nation’s biggest retailer is
putting pressure on its suppliers to reduce costs.
Wal-Mart Stores Inc.
) is reportedly encouraging its supplier network to slash product
costs. Given concerns over the first quarter’s sluggish consumer
spending figures and worries about poor winter weather, the
retail giant is attempting to rebound amongst worries over its
pending earnings report.
Stocks to Watch, Earnings Roundup:
Investors can expect earnings reports today from
Acuity Brands Inc.
Sigma Designs Inc.
Today’s U.S. Economic Calendar
- San Francisco Federal Reserve Bank President John Williams
speaks on panel on financial stability.
- Atlanta Federal Reserve Bank President Dennis Lockhart will
chair a panel on monetary policy.
- Motor Vehicle Sales at 7 a.m.
- MBA Mortgage Applications at 7 a.m.
- ADP Employment Report at 8:15 a.m.
- Gallup U.S. Job Creation Index at 8:30 a.m.
- PMI Manufacturing Index at 9:45 a.m.
- ISM Manufacturing Index at 10 a.m.
- Construction Spending at 10 a.m.
- EIA Petroleum Status Report at 10:30 a.m
Money Morning Tip of the Day:
Don’t listen to pundits warning of a biotech
Biotech stocks have been soaring. The Nasdaq Biotechnology
Index has climbed 46% in the last year, compared to only 10% for
the SP 500.
But after the biotech index shed 7% from March 20 through 26,
many Wall Street pundits started crying “bubble.”
signify a correction in the coming months – but the “bubble” is
not about to burst on biotech stocks.
In fact, the Nasdaq Biotech Index hasn’t even reached a market
correction yet. That’s defined as a 10% drop from a market’s
high. A bear market is reached after a 20% dip.
Now, let’s compare that to a “bubble” bursting. When that
happens, there’s a cataclysmic crash in the market.
Take the 1992 biotech crash for instance. From the end of
November 1992 through the beginning of March 1993, the Nasdaq
Biotech Index tanked more than 55%.
‘s Biotech Investing Specialist Ernie Tremblay says biotech’s
recent pullback is normal for the market.
“The correction we’re seeing now seems to happen every year at
about this time, like clockwork,” Tremblay said. “As the sector
races upward, everyone begins to wonder how long the momentum can
last. After a while, they get queasy from the altitude, and their
risk tolerance erodes. Time to take profits. So share prices
begin to tumble.”
With the recent pullback, now is a great time for investors to
add to their positions in strong biotech stocks.
“My investment strategy is always the same in this situation:
follow the Bollinger bands,” Tremblay said. “When a company you
own looks oversold – when its moving average touches the bottom
band twice in a short period of time – buy more shares.”
Ernie Tremblay understands the FDA approval process and
the market demand for emerging drugs better than almost
anyone else. Get more biotech investing insight and stock
picks from Tremblay
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