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How Did the Stock Market Do Today?
S&P 500: 1,952.29; +10.25; +0.53%
Nasdaq: 4,796.25; +39.72; +0.84%
The Dow Jones Industrial Average today added 76 points as shares of Apple Inc. (Nasdaq: AAPL) rallied after hedge fund manager Peter Tepper told CNBC that shares of the tech giant were trading at a bargain. Apple stock was up more than 2% today; however, Tepper is a little late to argue that AAPL is a great buy. Yesterday, we outlined why Apple stock was a must-own holding in your portfolio after the company's product event in San Francisco. Read all about it right here.
Meanwhile, biotech stocks surged, with the Nasdaq biotechnology index (.NIB) gaining roughly 1.8% on the day. Following Apple's strong day on the S&P 500 and the Nasdaq was biotech giant Gilead Sciences Inc. (Nasdaq: GILD), which added 3.4%.
The S&P 500 Volatility Index (VIX), the market's fear gauge, dipped roughly 4.9% on the day.
Top Stock Market News Today
- Stock Market News: Apple stock and biotech companies fueled the markets today, as early morning trading was tepid given traders' uncertainty over what direction the U.S. Federal Reserve will take with interest rates during next week's FOMC meeting. The jobs market displayed positive momentum heading into next week on news unemployment benefit claims fell more than economists anticipated to 275,000 for the period ending Sept. 5. This was the 27th straight week that unemployment claims remained below the critical 300,000 threshold.
- Under Investigation: Following heavy criticism from Washington and the American public, the Department of Justice announced it will be boosting its efforts to target and charge potential criminals in corporate investigations. The agency sent out a memo to its staff on best practices and how to acquire specific information in white-collar cases.
- Oil Outlook: Oil prices were on the rise this afternoon on news strong gasoline demand offset concerns over rising inventory levels reported by the U.S. Energy Information Administration this afternoon. This morning, WTI prices surged nearly 3.4% to reach $45.64. Meanwhile, Brent oil prices gained more than 2.3% to hit $48.70 per barrel.
- On Tap Friday: Tomorrow, investors will keep an eye today on two critical pieces of economic data. Watch for the Producer Price Index and a report on consumer sentiment. Both reports will offer some insight into the direction of inflation in the U.S. economy. With the unemployment rate sitting at 5.1%, the Federal Reserve will not likely take action and raise interest rates unless there is some upward trajectory toward its inflation target of 2%. Companies reporting earnings include Kroger Co. (NYSE: KR), IGATE Corp. (Nasdaq: IGTE), and Casey's General Stores Inc. (Nasdaq: CASY).
Stocks to Watch: LULU, DLTR, CS, CNW, XPO, KKD, GE
- Stocks to Watch No. 1, LULU: Shares of Lululemon Athletica Inc. (Nasdaq: LULU) cratered more than 16% today despite news the company issued a stronger than expected second quarter earnings report. The yoga clothing outlet announced weaker guidance figures for the upcoming quarter; however, it raised guidance levels over the next fiscal year.
- Stocks to Watch No. 2, DLTR: Shares of Dollar Tree Inc. (Nasdaq: DLTR) dropped nearly 3% after Credit Suisse Group AG (NYSE ADR: CS) issued a downgrade of the discount retailer's stock. The investment bank also announced it has slashed Dollar Tree's price target to $60 per share, a $10 cut from previous research notes. The downgrade came on expectations of slowing business growth and concerns about operational synergies after the company's purchase of Family Dollar Stores Inc. (NYSE: FDO).
- Stocks to Watch No. 3, CNW: Shares of Con-way Inc. (NYSE: CNW) surged more than 33% on news XPO Logistics Inc. (NYSE: XPO) will buy the company for roughly $3 billion. The deal is expected to boost the combined company's annual revenue levels to $15 billion.
- Stocks to Watch No. 4, KKD: Shares of Krispy Kreme Doughnuts Inc. (NYSE: KKD) fell nearly 12% today after the donut chain slashed its 2016 profit forecast.
- Stocks to Watch No. 5, GE: Jeffrey Immelt, the CEO of General Electric Co. (NYSE: GE), said today during an interview with CNBC that concerns about the Chinese economy are overblown and investors should still anticipate high growth rates by comparison to the rest of the world. General Electric's stock is down more than 6% this month due to exposure to volatility brought on by concerns over China. In fact, the stock price has now fallen into "discount" territory. Visit here to read about GE and two other "discount" stocks that investors should be buying at today's prices.
What Investors Must Know This Week
- $200 Trillion Debt Bubble to Spark Massive Sell-Off
- Cash In on a Strong Dollar and Weak Stocks
- How to Double Your Money: A Step-by-Step Guide
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