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Dow Jones today, October 14, 2014: The Dow Jones Industrial Average dropped 223 points Monday, shedding earlier gains as investors continued to express doubts about the global economy. The S&P 500 Volatility Index (VIX) jumped another 15% on the day. The market's fear index reached 24.64, its highest close since June 2012. The S&P 500 slumped below the 1,900 level ahead. The Index has suffered its worst three-day decline since November 2011.
Despite yesterday's drop, Money Morning Chief Investment Strategist Keith Fitz-Gerald – a seasoned market analyst with 33 years of experience – refuses to join the gloom-and-doom crowd that's now predicting a stock market crash of 20% to 30%. But a 10% stock market correction doesn't concern Keith, either. On the contrary, he relishes that idea.
Here's Keith's outlook for investors as talk of a stock market correction heats up:
And here's what else you should know to make your Tuesday profitable:
- Oil Prices Today: The price of Brent crude oil, the global benchmark in London, continued to slide this morning to $87.40 per barrel on news that Saudi Arabia told market participants to expect lower prices for an extended period of time. The announcement is putting pressure on WTI prices, which have now fallen to $84.66 per barrel and dragged down shares of shale oil producers in the process. But as our Global Energy Expert Dr. Kent Moors explains, by cutting oil prices rather than export volume, Saudi Arabia has signaled it is now ready for a potentially costly price war… and the stakes couldn't be higher for OPEC.
- Gold Prices Today: November gold prices continued to climb this morning to $1,237 per ounce on a weakening dollar and increased concerns about global markets.
- Earnings Confusion: Shares of JPMorgan Chase & Co. (NYSE: JPM) were down roughly 0.8% this morning after the company narrowly missed third-quarter earnings estimates. Strangely, the company released its earnings report nearly two hours after their results were posted on a third-party website, Shareholder.com. Although the report was removed from the site, a number of other news outlets had already reported the figures, prompting questions about whether the company's financial data could have been compromised. The company reported earnings of $1.36 per share, down marginally from analyst expectations of $1.38 per share, according to Thomson Reuters.
- A Lukewarm Debut: In a move that brings the last of the Big Detroit Three automakers back to the New York Stock Exchange, shares of Fiat Chrysler Automobiles NV (NYSE: FCAU) debuted on Monday. During its IPO, Fiat shares opened at $9.00, rose as high as $9.55, and closed at $8.92. The company plans to use this funding to increase its presence in the North American auto markets to offset a mature and stagnating European auto sector. Analysts, however, were not enthusiastic that the world's seventh-largest automaker will be able to attract and sustain investors.
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.