Dow Futures Spike After Fed Race Shakeup
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
According to stock index futures as of 7:40 a.m. EDT, the Dow Jones Industrial Average will rocket out of the gate today, spiking 150 points at the opening bell. The market is catching up to an eventful weekend of news: Lawrence Summers, the odds-on favorite to succeed Ben Bernanke as the head of the Federal Reserve, bowed out of contention, and the U.S. agreed to an end to the Syria crisis that doesn't involve a military attack.
World markets traded higher, celebrating the dip in geopolitical risk and the rising odds that the Fed won't quickly end its stimulus program. Emerging markets in particular jumped at the prospect of a continued easy-money stance from the Fed.
With those broader trends in mind, here are a few individual stock stories to watch for in today's market.
Boeing should continue to fly high today. The company is close to securing an $8 billion deal to provide fighter jets to South Korea, according to Reuters. Boeing reportedly beat out rival Lockheed Martin with the only fighter bid that came in under budget. The next step will be a government committee meeting on the deal that could be held as early as next week. Boeing shares are up 2% in premarket trading.
Who says paper is boring? Shareholders in Boise stand to have an exciting day today after the paper and packaging company agreed to be purchased by Packaging Corporation of America . The companies will combine for about $6 billion in annual sales and nearly $1 billion in yearly profit. Packaging Corp. expects the deal to immediately boost its earnings. Both stocks are up in premarket trading, with Boise spiking 26.6% and Packaging Corp. rising 12.7%.
Finally, Scripps Networks Interactive could get a boost after Barron's argued over the weekend that shares are worth 20% to 30% more than their current valuation. The network behind HGTV, the Travel Channel, and the Food Network has seen its advertising revenue rise along with ratings, but it is cheaper than other media companies, such as Discovery Communications, on a P/E basis. Barron's says overseas expansion and higher cash returns to shareholders could power big gains in the stock. Scripps shares are unchanged in premarket trading.
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The article Dow Futures Spike After Fed Race Shakeup originally appeared on Fool.com.Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Scripps Networks Interactive. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.