Oil falls to a 3-week low, Apple tumbles 3%, BoJ may reconsider bond purchase target, and the Fed quiet period begins. Here are four things to know in the market on Wednesday, October 26.
1. Oil Falls to 3-Week Low
Oil prices tumbled more than 1% on Wednesday, falling to a three-week low. The decline came after the American Petroleum Institute announced oil inventories rose by 4.8 million barrels last week. The figures far surpass the 2-million-barrel increase projected by analysts.
Official data from the U.S. Energy Information Administration is due later this morning. Analysts are projecting an increase of 1.69 million barrels.
U.S. crude futures were down 1.12% to $49.40 in early morning. Brent oil fell 1.02% to $50.27.
2. Apple (AAPL) Plunges 3%
Shares of Apple plunged 3% during pre-market trade after a disappointing third-quarter report. The company posted its third straight decline in iPhone sales and forecasted disappointing profit margins for the 2016 holiday season.
Apple projected a 38% to 38.5% outlook in profit margins, missing expectations of a 39% outlook.
3. Bank of Japan May Reconsider Bond Purchase Target
The Bank of Japan may move away from its 80-trillion-yen bond purchase target, according to sources cited by Bloomberg.
The BoJ now wants to focus on its goal of keeping bond yields near zero.
The central bank will announce its monetary policy decision next week. Analysts are not expecting any new easing measures.
4. The Fed’s Quiet Period Begins
The U.S. Federal Reserve’s quiet period begins today, during which officials are prohibited from making public comments or appearances on the economy and monetary policy.
The Fed will commence its next monetary policy meeting on November 2.
Analysts say it is unlikely the Fed will raise rates at its next meeting, as it falls just days before the presidential election. Markets are pricing in on a 7% chance of a rate increase in November and a 73.6% chance of a rate hike in December.
