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The Dow Jones and S&P 500 both closed at new all-time record highs Thursday on news that the European Central Bank could soon take action on monetary policy if continued weakness undermines growth in the bloc economy.
The markets are also still responding positively to the Republican surge on Tuesday that put the GOP in charge of both chambers of Congress for at least the next two years.
The S&P 500 Volatility Index (VIX), the market's volatility gauge, fell more than 1% on the day.
Dow: 17,555.47, +69.94, +0.40%
S&P 500: 2,031.21, +7.64, +0.38%
Nasdaq: 4,638.47, +17.75, +0.38%
What Moved Markets Today: Speculation on actions by the European Central Bank continues to dominate headlines. Investors are growing weary of ECB Head Mario Draghi's slow and teasing approach to addressing ongoing concerns about the near term in the EU economy. That said, investors seem sure that the ECB will act beyond rate cuts in the near future to shore up growth concerns.
Today's Most Notable Economic News: The U.S. jobless claim level hit a 14-year low this morning. The U.S. Department of Labor reported that weekly applications for unemployment last week slipped 10,000 to a seasonally adjusted level of 278,000. The news is extremely positive ahead of Friday's all-important October jobs report, which is slated for release at 8:30 tomorrow morning.
Now check out the day's most important market notes:
- Post-Election Profit Opportunity: The 2014 midterm elections are a big deal to investors. With the Republican Party taking control of both chambers of Congress, there is opportunity for swift policy action on a number of different areas of investment for the United States. To make money off the political wave that just unfolded, be sure to check out this recap of the best places to invest, given the political climate in the United States heading into 2015.
- What a Win: Shares of Kate Spade & Co. (NYSE: KATE) surged nearly 18% after the company reported better than anticipated earnings in the third quarter. The luxury retailer reported that North America and international sales jumped more than 30%, besting rivals in the luxury space. The company still reported a quarterly loss of $0.07 per share, but that was much better than the market's expected loss of $0.14 per share.
- Another Surge: Shares of Tesla Motors Co. (Nasdaq: TSLA) surged more than 4% this afternoon after the company said it has been unable to procure sufficient supplies to manufacture enough cars to meet demand. On Wednesday, TSLA beat earnings estimates but fell short of delivery expectations for its Model S sedans. The firm reported a net income of $3 million or $0.02 per share. This beat Street expectations of a $0.01 loss for the quarter. Here's our full recap on Tesla's earnings…
- Food Frenzy: Shares of Whole Foods Market Inc. (NYSE: WFM) surged more than 12% on news the company beat quarterly earnings expectations. Whole Foods said it was able to expand its market share and boost profits from the launch of new products. The retail company said it expects a 9% growth in 2015 earnings, a stark contrast from weak numbers that have driven the firm's stock down more than 30% over the last 12 months…
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 Money Morning Resource Expert Peter Krauth, a 20-year commodity guru and portfolio advisor, has identified a very rare, very lucrative opportunity…
- How to Profit from Unrest in Hong Kong: 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…
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.