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.
We should see a flat start to trading in the stock market today. The Dow Jones Industrial Average (DJINDICES: ^DJI ) will gain a negligible two points at the opening bell, according to index futures as of 7:50 a.m. EDT.
The always-exciting earnings season is in the home stretch, with about one-third of S&P 500 companies left to report quarterly results. Overall, earnings have been solid so far. A full 76% of the companies that have announced results beat Wall Street profit expectations, according to a tally by Bloomberg. Corporate profits are continuing their upward march.
With that bigger picture in mind, here are three stocks to keep an eye on in today's market.
Facebook (NASDAQ: FB ) shares could surge higher in trading. Or they might drop. Then again, the stock could simply pause. Shares made all three of those moves in after-hours trading last night following Facebook's quarterly update. The report showed that revenue spiked 60% to reach $2.02 billion. And Facebook now boasts 730 million daily users, a 25% increase from last year. Still, management cautioned that it will not increase the number of ads it shows in news feeds, meaning next year's revenue growth won't be as easy to achieve. Facebook also noted in the earnings conference call that it saw a dip in usage among younger teens, which could be a worry if the situation persists. The stock is flat in premarket trading.
Expedia (NASDAQ: EXPE ) is on the move this morning after reporting stronger-than-expected results for the third quarter. Earnings came in at $1.43 per share, 8% better than last year's haul. Sales jumped by 17% to $1.4 billion as the hotel business improved. Expedia saw a 20% increase in room nights stayed, which was tempered slightly by a 7% dip in revenue per room night. An uptick in advertising revenue helped the travel company log slightly higher profitability, too. Shares are up 17% in premarket trading, putting the stock at about the same valuation it had at the beginning of the year.
Finally, MasterCard (NYSE: MA ) booked earnings this morning of $7.27 a share on $2.2 billion in revenue. Purchase volumes rose 14% to $763 billion in the quarter, and operating margin came in at a strong 56.3% despite an increase in rebates and incentives. MasterCard's total gross dollar volume was up 15% to more than $1 trillion. The stock is slightly higher in premarket trading.
Focus on what matters
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