U.S. stock markets failed to move much Monday. It appears investors aren't prepared to take much action until the start of the Federal Open Market Committee meeting on Tuesday and the central bank's announcement on Wednesday regarding rate hikes and stimulus efforts. The Dow Jones managed to tack on 12.27 points, while the S&P 500 lost 2.95 points.
What moved the markets: The markets moved down on declining energy prices, as oil stocks slipped after Goldman Sachs Group Inc. (NYSE: GS) slashed its 2015 Brent and West Texas Intermediate (WTI) crude forecasts on rising supply concerns. After the announcement, WTI prices dipped below the $80 mark for a short period, before rebounding to nearly $81 per barrel. Brent crude oil prices took the strongest hit, slipping 0.8% to less than $85.50 per barrel. On the day, the S&P 500 energy index (INDEXSP: SP500-10) dipped 2.2%.
Most notable economic news: A slew of mixed economic news hit the markets this afternoon. First, contracts to purchase existing homes in September were up 0.3%. Next, manufacturing output in Texas slipped but remained positive for October. Finally, activity in the U.S. services sector slipped to a six-month index low of 57.3, coming in lower than consensus expectations of 58.
Now, here's a breakdown of today's other top stories and stock performances:
Cloud Wars: In an effort to boost its cloud services profit against rivals, Microsoft Corp. (Nasdaq: MSFT) announced that Windows Office 365 will include unlimited storage on its cloud. The software, which ranges from $70 to $100 depending on the number of licensed users, will incorporate cloud storage as a direct challenge to Dropbox and Google Inc. (Nasdaq: GOOG, GOOGL).
Earnings Slip: Shares of Merck & Co. Inc. (NYSE: MRK) slipped more than 2% this afternoon on news that the company beat adjusted earnings expectations but saw weaker than expected revenue. The company said revenue slid due to poor sales performance from its cervical cancer vaccine, Gardasil.
Election Blues: Brazilian stocks sank this afternoon on news that President Dilma Rousseff won reelection in a runoff vote. The markets favored her more centrist rival Aecio Neves. The most notable declines include the 13% drop from Petroleo Brasileiro Petrobras SA (NYSE ADR: PBR) and the nearly 5.5% decline from mining giant Vale SA (NYSE ADR: VALE). Shares of Centrais Eletricas Brasileiras SA (NYSE ADR: EBR) also dipped more than 12%.
Banana Boom: At least one company isn't concerned about geopolitics in Brazil. Shares of Chiquita Brands International Inc. (NYSE: CQB) were up nearly 1.5% on news the company would be acquired by Brazil's Cutrale-Safra. The merger comes after Chiquita shareholders shunned a plan to sell to Irish food company Fyffes Plc. (OTCMKTS: FYFFF).
Germany Slips: The Ifo Institute for Economic Research announced that German business confidence slipped to 103.2, its sixth consecutive miss of this leading indicator. The figure suggests that the Eurozone's largest engine is struggling to get back on track after a second-quarter contraction. The 103.2 reading was well below analyst projections of 104.5.
Now our experts share some of the most important investment moves to make based on today's market trading - for Money Morning Members only:
How to Profit from a Stronger U.S. Dollar: The U.S. Federal Reserve plans to wind down its asset purchases this month, but Japan and the United Kingdom are still buying, full swing. Meanwhile, the European Union is just looking to get started with its stimulus efforts. That's sent the U.S. dollar into a major run-up, with the euro and yen on the losing side. This adds up to a global currency conflict. And our resource expert Peter Krauth, a 20-year commodity guru and portfolio advisor, has identified a very rare, very lucrative opportunity...
The Profit Opportunity in Hong Kong's Unrest: Most investors haven't got a clue about what Hong Kong's riots represent, let alone the investment potential that's being unleashed there. As a result, they're going to miss out on some really terrific profit opportunities. But before we get to the best way to play this, understanding what's driving the unrest is key...
How to Get a Piece of Wall Street Profits Without the Wall Street Corruption: There's simply no limit to how far Wall Street will go to make a buck. It's no wonder. With corporate offenses and "bad behavior" routinely going unpunished, perpetrators have developed a sense of impunity. But we can strike back against banks that are behaving badly. And here's how we're going to play a non-bank investment against a rigged services industry...
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.