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Stock market today, June 5, 2014: Today's (Thursday) stock market close was in positive territory and the Dow Jones Industrial Average reached a record high again after the European Central Bank announced plans to cut interest rates and possibly consider stimulus efforts. The ECB slashed its main refinancing rate to a historic low from 0.25% to 0.15%. It also cut its deposit rate to -0.1%.
Here's the scorecard from today's trading session:
DOW: 16,836.11, +0.59%
S&P 500: 1,940.46, +0.65%
NASDAQ: 4,296.23, +1.05%
And here are the top stories from today:
- What's in the Box: Yesterday afternoon Amazon.com Inc. (Nasdaq: AMZN) took to Twitter to send invitations to a special event on June 18. Reports are saying that this is the day that Amazon will release its "Holy Grail" of technology. It's not clear whether this will be the day that Amazon officially unveils its own smartphone or if the company has developed some other technology that is going to set it apart from its rivals.
- You're Fired: It was just a matter of time. General Motors Co. (NYSE: GE) Chief Executive Mary Barra has fired 15 employees and disciplined five others over the current ignition switch scandal plaguing the company. Following a report from former U.S. Attorney Anton Valukas, Barra made the decision on evidence that the defective ignition switch led to numerous accidents and at least 13 deaths.
- It's in the Bag: Multiple outlets are reporting that Sprint Corp. (NYSE: S) and T-Mobile US Inc. (NYSE: TMUS) have formally agreed to a deal. The merger would see Sprint purchase T-Mobile for about $32 billion, or $40 a share. The nation's third- and fourth-largest carriers would combine forces to take on AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ). And for investors looking to profit, Money Morning's Chief Investment Strategist Keith Fitz-Gerald has found a hidden profit play from this deal.
- That Went Poorly: Shares of Rite Aid Corp. (NYSE: RAD) slumped more than 7% on news that the company missed earnings expectations in the wake of rising drug costs. The company also slashed its earnings guidance for 2014 to a range of $0.30 to $0.40 per share from its previous projections of $0.31 to $0.42.
- Deal in the Stream: The streaming industry continues to see huge growth. The Financial Times reports that Twitter Inc. (Nasdaq: TWTR) is now deep in discussions to purchase SoundCloud. Terms of the deal are unclear, but the microblogging company can expect to pay a premium after Apple Inc. (Nasdaq: AAPL) recently shocked the industry by purchasing headphone and audio-streaming company Beats for $3 billion.
Now: Our experts share some of the most important investment moves to make based on today's market trading – for Money Morning Members only:
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.