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How Did the Stock Market Do Today?
Dow Jones: 16,674.74; -65.21; -0.39%
S&P 500: 1,990.20; -5.11; -0.26%
Nasdaq: 4,893.95; +4.71; +0.10%
The Dow Jones Industrial Average today (Thursday) slid 65 points today after the U.S. Federal Reserve announced that it was not raising interest rates from its record-low level. The central bank has kept interest rates near zero since 2006 and said a further delay is required due to concerns about weakness in the global economy. The final vote was 9-1 to maintain its monetary policy.
According to notes from the Fed Open Market Committee, which concluded its two-day meeting on monetary policy this morning, four members of the committee said they do not support an interest rate hike until after 2015. The central bank will have two more meetings this year, Oct. 27-28 and Dec. 15-16. Given that the Fed will not hold a press conference in October, pundits believe the move will happen in December. However, as Money Morning Capital Wave Strategist Shah Gilani explains, the small rate hike that has been considered now for a year has largely been baked into the markets.
While the Fed sees stronger job growth in the United States, it remains disappointed by low inflation levels. Meanwhile, economic concerns around the globe continue over slowing growth in the Chinese economy. This morning, Japan reported weak export levels and a downgrade from Standard & Poors, signaling continued weakness in the Asia Pacific economy.
Top Stock Market News Today
- Stock Market News: In a press statement, the U.S. central bank said "recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term." Those global economic developments include China's recent stock market slump, a major decline in exports in Japan, growing concerns about Canada in a period of declining oil prices, and weakness in commodity currencies.
- Oil Prices Slip: Oil prices weakened after the Federal Reserve announced plans to maintain its interest level. Today, WTI crude oil prices dipped 0.4% to reach $46.85. Meanwhile, Brent oil prices fell 1.1% to hit $49.19 per barrel. Oil prices are under increased pressure after Goldman Sachs Group Inc. (NYSE: GS) reported there is a 50% chance that U.S oil prices will slide to $20 per barrel. The investment bank said a massive crude glut could produce a low prices that last for the next 15 years. In addition, concerns about Japan's exports has signaled increase weakness in Asia's broader economy.
- On Tap Friday: Tomorrow, pay attention for Leading Indicators and an update on the Baker Hughes Inc. (NYSE: BHI) rig count. No major U.S. companies will be report earnings on Friday.
Stocks to Watch: RAD, ORCL, CVC, SHOP, AMZN
- Stocks to Watch No. 1, RAD: Shares of Rite Aid Corp. (NYSE: RAD) slipped more than 10% after the drugstore chain reported weaker than expected quarterly earnings. The drugstore giant said its quarter profits were at $0.02 per share, less than half of consensus estimates. The company also reduced its quarterly outlook.
- Stocks to Watch No. 2, ORCL: Shares of Oracle Corp. (NYSE: ORCL) fell more than 4% on news the company's first-quarter profits slipped. The firm declared a double-digit decline of software license agreements, rising costs, and falling sales. The company also cited Forex concerns due to a rising U.S. dollar, which impacted its revenue abroad.
- Stocks to Watch No. 3, CVC: European telecom giant Altice SA (OTCMKTS: ATCEY) will purchase Cablevision Systems Corp. (NYSE: CVC) for roughly $17.7 billion, including debt, according to The New York Times. Shares of CVC jumped more than 13% on the day.
- Stocks to Watch No. 4, SHOP: Shares of Shopify Inc. (NYSE: SHOP) surged 23% today on news the company is partnering with Amazon.com Inc. (Nasdaq: AMZN) to help merchants create their own e-commerce stores. In the deal, Amazon shop owners on its Webstore have been advised to relocate their online properties to Shopify's platform. The deal is a boon for the Canadian software company, which has already seen its stock surge more than 70% since going public in May 2015.
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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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.