The Dow Jones jumped 196 points Monday in a volatile session. Why the rise? Oil prices surged again after a massive strike at U.S. refineries created supply concerns.
Today Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co." to discuss the changing investing environment in Japan due to its aging population, plus how to invest as central banks work to devalue currencies around the world...
Today's Scorecard:
Dow: 17,361.04, +196.09, +1.14%
S&P 500: 2,020.85, +25.86, +1.30%
Nasdaq: 4,676.69, +41.45, +0.89%
The S&P 500 Volatility Index (VIX), the market's fear gauge, fell by 7.5% on the day.
What Moved the Markets Today: The ISM manufacturing index hit 53.5 in January, well below expectations of 54.5. Meanwhile, consumer spending in December saw its largest decline since 2009 despite falling energy prices. Finally, U.S. crude oil prices jumped more than 3%, hitting their highest level in almost a month.
Now, check out the other top market stories - plus get our new profit tip for investors:
Oil Profits: Energy shares soared on Monday following the swift rise in crude oil prices. Shares of SandRidge Energy Inc. (NYSE: SD) were up more than 9.9%, while shares of Denbury Resources Inc. (NYSE: DNR) were up more than 12%.
Solar Soars: Solar power companies had a huge day on news that China will be installing 15 gigawatts of solar capacity in 2015. That's a 43% jump over installed capacity in 2014. Shares of First Solar Inc. (Nasdaq: FSLR) were up 7.4%, while Canadian Solar Inc. (Nasdaq: CSIQ) shares were up by more than 4.5%.
Stocks to Watch: Rising oil prices pushed up shares of Exxon Mobil Corp. (NYSE: XOM) nearly 2.5%. The company announced its quarterly profits slipped by 21%, but the firm still beat Wall Street earnings expectations. The company's profits were boosted by a tax adjustment and rising sales from its chemicals business. The company also said today that it will announce its 2015 capital expenditure plans on March 4. Analysts and pundits will be paying more attention than usual this year given the sharp decline in crude oil prices.
Going Broke: Shares of RadioShack Corp. (NYSE: RSH) hit an all-time low, slipping another 13% on news the company is preparing to enter bankruptcy. According to Bloomberg, the bankruptcy deal will see half of its stores taken over by telecom giant Sprint Corp. (NYSE: S).
Apple a Day: Shares of Apple Inc. (Nasdaq: AAPL) were up 1.25% on news the tech giant sold roughly $5 billion in bonds today. The company is raising money after it reported huge quarterly profits and steep sales of the iPhone 6. The company's bonds are expected to pay roughly 0.95% more than the 10-year Treasury bond.
Stretching Profits: Shares of Lululemon Athletica Inc. (Nasdaq: LULU) slipped more than 1.3% after it was reported that founder Chip Wilson will be stepping down from the company's board.
Money MorningTip of the Day: Earnings reports are better than traders would have you believe.
Today's tip comes from Money Morning Chief Investment Strategist Keith Fitz-Gerald:
Markets took a sharp dip last week with investors reacting to dour earnings reports from major U.S. companies and sagging durable goods orders. Bellwether companies Caterpillar and Microsoft both disappointed, seemingly adding to the misery.
However, as usual, traders can't see the forest for the trees.
Trading action is really about a much stronger dollar, because it makes U.S. goods more expensive and naturally drags down earnings while also diminishing the value of foreign revenue. It's temporary at best.
The truth of the matter is that more than 70% of companies that have reported to date have beaten analyst estimates, profit margins are still growing, and sales are very much on the increase - at least when we're talking about companies tied into the Unstoppable Trends I discuss in my Total Wealth publication.