Stock market today, July 16, 2014: The Dow Jones today (Wednesday) closed up for its 15th record-breaking close in 2014.
U.S. Federal Reserve Chairwoman Janet Yellen testified before Congress again today. She reiterated that the economy remains vulnerable to a struggling job market and stagnating wages - two reasons why the central bank will continue its loose monetary policy in 2014. Still, in its Beige Book this afternoon, the Federal Reserve said that the economy was expanding at "a modest to moderate pace."
Here's the scorecard from today's trading session:
Bad Apples: Apple stock (Nasdaq: AAPL) was on the rise this afternoon, despite news that the company would pay $400 million to settle an e-book price-fixing case, pending an appeal. The settlement would allow the company and the plaintiff to avoid a trial. Initial lawsuits, which charged that Apple engaged in a price-fixing scheme, sought damages of up to $840 million. Gains today likely came from Apple's new deal with International Business Machines Corp. (NYSE: IBM).
Hardware Surge: Shares of Intel Corp. (Nasdaq: INTC) were up more than 8% on Wednesday, with the company reaching a 10-year high for its stock. INTC beat Street earnings estimates by two cents and revenue by $140 million. The largest chip manufacturer surged on news that it had beat demand estimates on companies seeking to replace old hardware. Intel also announced a $20 billion buy-back plan of more than 78 million shares.
Cyber War: In an interview with CNBC, Treasury Secretary Jack Lew said that hundreds of cyber-attacks have taken place in recent years against U.S. banks and other institutions in order to disrupt or dismantle the U.S. financial system. Lew used his time to push Congress to pass a new cybersecurity bill that would allow greater collaboration between companies to address these threats.
Security Surge: Following an upgrade from Goldman Sachs Group Inc. (NYSE: GS), shares of FireEye Inc. (Nasdaq: FEYE) jumped by more than 2%. Since bottoming out in the mid-20s, the stock has been attempting to climb back. FEYE is down from a 52-week high of $97 after concerns about its valuation. Goldman set a price target of $42 per share for the stock.
Now our experts share some of the most important investment moves to make based on today's market trading - for Money Morning Members only:
Act on This Massive Profit "Spark" Ahead of the Big Boys: It's easy to see why investors pile on to a company's stock on the heels of highly successful products, technologies, or services. For small caps, finding the right leader can prove a more critical "spark" to major profits. This is why you should follow Money Morning Small-Cap Investing Specialist Sig Riggs' advice and use these three steps to make big gains...
The U.S. Export Ban Is a Windfall for These Companies: After more than four decades, it looks like America is getting back into the oil export business again. For the first time since the 1970s, Washington has opened the door to sending more U.S. crude abroad. And these companies are poised to profit big from the announcement...
The "20% Catalyst" That Will Send These Shares into the Stratosphere: In a surprise move, France said it would take a 20% stake in French engineering giant Alstom SA (OTCMKTS ADR: ALSMY). It's a complicated deal. But it could serve as an additional "catalyst" for the General Electric Co. (NYSE: GE) share-price rally we've been predicting. Here's why...
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.