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How Did the Stock Market Do Today?
The DJIA today slipped nearly 34 points, while the Nasdaq hit a fresh record after several prominent components reported strong earnings or introduced new features that could boost future revenue.
Shares of Google Inc. (Nasdaq: GOOG, GOOGL) surged more than 16% and hit intraday records on news that the company crushed earnings expectations. The company's Class A stock briefly jumped above $700 per share. The company added nearly $60 billion on Friday after the company said it has boosted revenue from its mobile and ad divisions.
The news abated concerns that rival Facebook Inc. (Nasdaq: FB) could cut into the search giant's YouTube business after its push into video.
Top Stock Market News Today
- The Fed Effect: The markets continued to react Federal Reserve Chairwoman Janet Yellen's testimony this week before Congress. Yellen said the central bank is prepared to move on interest rate policy this year and suggested it is not focusing on events in Greece or China as influences on when it might tighten monetary policy. The U.S. dollar had its largest weekly gain in two months as the markets prepare for a rate hike. Still, traders are concerned a rate hike will only fuel a stronger dollar, which could affect company's revenue abroad. Wall Street analysts expect that U.S. companies will report their worst sales numbers in roughly six years, with the stronger dollar a primary reason.
- Oil Outlook: Oil priceswere mixed during Friday's trading session. WTI crude futures for September were down marginally to $50.90 per barrel. Meanwhile, Brent oil prices added 0.3% to hit $57.13 per barrel. Oil services giant Schlumberger Ltd. (NYSE: SLB) beat Wall Street earnings expectations today and said that oil prices are nearing a bottom. The company said it expects oil production to rebound in the coming months.
- On Tap Next Week: On Monday, a light economic calendar will place an increased emphasis on the start of a busy earnings season. Companies reporting earnings on Monday include Brown & Brown Inc. (NYSE: BRO), Genuine Parts Co. (NYSE: GPC), Halliburton Co. (NYSE: HAL), International Business Machines Corp. (NYSE: IBM), Morgan Stanley (NYSE: MS), Unisys Corp. (NYSE: UIS), and Zions Bancorp. (NYSE: ZION).
Stocks to Watch: CVX, XOM, MRO, FB, ETSY, BA
- Stocks to Watch No. 1, CVX: Energy stocks suffered today as low oil prices cut into their profitability levels. Shares of Exxon Mobile Corp. (NYSE: XOM) slipped 0.3%, Chevron Corp. (NYSE: CVX) dipped more than 1.4%, and Marathon Oil Corp. (NYSE: MRO) dropped more than 2.8%.
- Stocks to Watch No. 2, FB: Shares of Facebook Inc. (Nasdaq: FB) hit a new record today, adding 4.5% on news that the social networking giant is exploring the introduction of a "buy" button that that will allow customers to purchase products directly off a company's Facebook page.
- Stocks to Watch No. 3, ETSY: Shares of Etsy Inc. (Nasdaq: ETSY) surged more than 30% on news that the company's Internet traffic has jumped significantly since Google reconfigured its search algorithms. Google executives said during a conference call that Etsy was benefiting from increased mobile traffic. The stock is on a four-day winning streak and is now up more than 38% over the last 30 days.
- Stocks to Watch No. 4, BA: Shares of Boeing Co. (NYSE: BA) slipped more than 1% after the company said it will take a second-quarter charge after it experienced problems developing its KC-46 aerial refueling tanker aircraft program. Boeing shares were the largest drag on the Dow Jones Industrial Average this afternoon. The company said deficiencies in its fuel systems have driven up costs, although it plans to deliver the new system to the Air Force on schedule in 2017.
What Investors Must Know This Week
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- The Real Impact of the Iran Nuclear Deal on U.S. Oil Prices
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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.